August 5, 2022, Weekly Equity Market Recap. On positive corporate earnings news along with Nonfarm payrolls beating expectations in July, the S&P 500 rose 0.4%, the Dow was largely flat, as the Nasdaq jumped 2.2%. However, from a broader perspective, the equity markets appear to cheer slowing economic news, an important driver for receding inflation, given this could be a catalyst for a less hawkish Federal Reserve. July Manufacturing Purchasing Managers' Index ("PMI") showed a slowdown in new orders and demand. US ISM Manufacturing PMI is at a current level of 53.00, down from 56.10 last month and down from 60.60 one year ago. This is a change of -5.53% from last month and -12.54% from one year ago. Further, "Job Openings and Labor Turnover Summary" (JOLTS) revealed there were 605,000 fewer job openings in June than in May, implying slumping economic growth may be starting to impact the labor market. Finally, Federal Reserve Bank of Richmond President Thomas Barkin said the central bank will get inflation growth back under control, but a recession may be inevitable
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