Homrich & Berg says inflation stays above Fed target, weighing on stocks and bonds

Homrich & Berg flagged steady U.S. growth signals, persistent inflation pressure, and rising long-term rate expectations despite Fed jawboning.

• U.S. stocks fell 0.5% in July; Russell 3000 growth dropped about 5% versus value, the worst relative month since 2001.
• The momentum factor slid nearly 8%; value, quality, and defensive stocks outperformed while tech lagged amid a growth-style unwind.
• AI-linked stocks fell over 14% since early June; non-AI stocks gained about 5%, keeping the equal-weighted S&P 500 near highs.
• The FOMC held rates; markets priced about an 80% chance of a September hike; the 30-year yield rose to about 5.2%, the highest since 2007.