IN THIS ISSUE

• Macro Strategy — Divergences, Shocks, and Inflation Dynamics: Inflation is being driven more by temporary supply shocks than overheating demand, making the Federal Reserve more likely to remain on hold as tariff and energy pressures ease and inflation expectations stay anchored.
  
  
• Market View — Market Snippets: U.S. Real GDP Growth and Exceptional Foreign Demand for U.S. Assets: The U.S. economy remains resilient, supported by strong consumer spending, robust investment, and sustained global demand for U.S. assets, reinforcing its position as a leading destination for capital.
  
  
• Thought of the Week — A High Hurdle for Q2 Earnings: Analysts expect another strong quarter of S&P 500 earnings growth, supported by broadening participation across sectors and market caps despite high expectations.