While still high, inflation has cooled somewhat, climbing 8.5% year-to-date as of July 31, down from 9.1% the previous month. This reduction, which comes after dropping gas prices, marks a bigger slowdown than market analysts had forecast. Economists surveyed by Dow Jones had expected an increase of 8.7%.
The price index was flat in July because lower prices for fuel, airfares, and used cars offset rises in rent and food costs. Core inflation was also slower than economists had expected, rising by 0.3%, compared to 0.7% in June. Economists had expected an increase of 0.2%.
But while inflation is still well above the norm, these figures appear to have boosted investor confidence and made market participants less risk averse. After these consumer price index numbers were made public, stocks went up sharply. The S&P 500 went up 1.7% on Wednesday, reaching its highest level since early May, while the Dow Jones Industrial Average rose 441 points or 1.8%, and the Nasdaq Composite went up more than 2%.
“Efforts by the Federal Reserve to cool the economy and tame inflation has resulted in a more favorable risk-on environment,” said Todd Rosenbluth, head of research at VettaFi. “Actively managed ETFs can seek to take advantage of the sentiment through security selection.”
As part of its lineup of active exchange traded funds, T. Rowe Price offers a suite of actively managed equity ETFs, including the T. Rowe Price Blue Chip Growth ETF (TCHP), the T. Rowe Price Dividend Growth ETF (TDVG), the T. Rowe Price Equity Income ETF (TEQI), the T. Rowe Price Growth Stock ETF (TGRW), and the T. Rowe Price US Equity Research ETF (TSPA).
T. Rowe Price has been in the investing business for over 80 years through conducting field research firsthand with companies, utilizing risk management, and employing a bevy of experienced portfolio managers carrying an average of 22 years of experience.
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