Five in Five

• 2-year yields dropped 27 basis points on weaker-than-expected jobs report.
• The spread between the 30-year Treasury and the 2-year Treasury hit a three-and-a-half-year high.
• The market is now pricing in a 90% chance of a cut at the September Federal Open Marketing Committee (FOMC) meeting.

Sources: BTC Capital Management, Bloomberg

• Since the potential new tariffs were announced in April, many companies announced they face uncertainty
  regarding impact on revenue and earnings. As such, several companies have withdrawn their forward-looking
  guidance.
• The Consumer and Automotive & Transportation sectors have seen the most companies withdraw or cut guidance
  as imports constitute a significant factor in those two sectors.
• Price hikes have been predominantly focused in the Consumer sectors and the Industrial/Manufacturing sectors,
  whereas companies in other sectors have been able to weather the storm and absorb the higher input costs,
  rather than pass them on to consumers.

Sources: BTC Capital Management, LSEG

• The U.S. dollar has fallen in value this year versus most other global currencies, as displayed above via the U.S. Dollar Index.
• The U.S. dollar has recovered somewhat since July as recent releases of positive economic data has stoked hopes of the Federal
  Reserve cutting rates. The U.S. dollar’s rally fizzled out slightly last week with the weaker-than-expected job numbers.
• Investors continue to monitor not only economic releases but also global flows into investment markets which spur higher demand for
  local currencies.

Sources: BTC Capital Management, FactSet