From Equity Research
Equity markets rallied strongly in July with particular strength seen in beaten down sectors such as Consumer Discretionary and Information Technology. Although recession fears continue to weigh on the market, it appears that some investors may be handicapping the potential for a soft landing for the economy. With this backdrop, the VIX Index or “fear gauge” dropped from near 30 to end the month at a three-month low near 21. For the full month, major equity indexes were all positive with the Dow Jones Industrial Average increasing 6.7%, the S&P 500® index up 9.1%, and the smaller cap weighted Russell 2000® up 10.4% for the month.