Wage Growth

The Bank of Japan may keep interest rates at 1% in July, but market participants are still watching for a possible move to 1.25% later this year. Yen weakness, rising producer prices and oil above $90 are keeping inflation risks firmly on the policy radar.

The Dow Jones pushed to an all-time high as a weak payrolls reading and downward revisions reinforced the view that the labor market has cooled. Investors rotated away from technology and into cyclical sectors while watching CPI and PPI as the next decisive tests for Fed policy expectations.