Stocks were able to shake off a sell-off on Thursday and closed higher in the week that was shortened for the holidays. The Nasdaq gained 0.43 percent, the S&P 500 Index 0.40 percent and the Dow Jones Industrial Average 0.24 percent. The Russell 2000 Index lost 1.24 percent.

SPDR Utilities (XLU) was up 1.38 percent, SPDR Materials (XLB) was up 1.08 percent, and SPDR Industrial (XLI) was up 1.06 percent. SPDR Energy (XLE) fell 2.11 percent. It was in decline more than twice this midweek after OPEC members failed to agree on production cuts.

Minutes from the last Federal Open Market Committee meeting showed that some Fed officials are concerned about rising inflation. They discussed tapering earlier than expected. While this is not the view of a majority of participants, apart from Federal Reserve Chairman Powell, the weekday news weighted stocks.

The 10-year government bond yield closed the week at 1.36 percent. iShares Barclays 20+ Year Treasury (TLT) was up 0.31 percent for the week.

The ISM services index for June was 60.1 percent, up from 64.0 percent in May. This suggests that the economic reopening may have peaked. This should begin to ease price pressures in the coming months as supply chains improve.

The Job Vacancies and Labor Turnover (JOLTS) survey in May showed 9.2 million vacancies as many companies are still unable to fill positions.

Initial jobless claims for the week ending July 3 totaled 373,000, virtually unchanged from the previous week.

iShares China Large Cap (FXI) fell 0.61 percent this week after China announced it would make it difficult for Chinese companies to trade in the US. A recently publicized taxi app company DiDi Global (DIDI) posted a price drop of up to 8 percent this week before recovering to a 0.91 percent drop. Chinese regulators imposed various fines on the company days after it went public, including banning its app from Chinese app stores. Unlike the previous growth cycle in emerging markets in the 2000s, investors may need to be more vigilant about judicial risk in the future.

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