Consumer sentiment has attained its highest level in nearly two years, and short-term price expectations have risen.

The US yield increased by 14 basis points to reach 4.77 percent, and the dollar rebounded from its worst week since November.

The S&P 500 had its strongest week since mid-June, despite stock market consolidation.

Earnings estimates for the S&P 500 are rising quicker than they are falling, indicating that analyst revision momentum is well above its November low.

The S&P 500 already factors in positive macroeconomic news, and robust US economic data increases the likelihood of a soft landing.

For three reasons, high-quality bonds are preferred over stocks: reduced inflation and weaker US GDP growth in the second half benefit bonds.

Governor Christopher Waller anticipates two more rate increases this year to bring inflation down to 2%.

Fed policymakers are cautious, with Governor Waller predicting two more rate hikes in 2018.

The Fed is likely to raise its benchmark interest rate by 25 basis points at its meeting later this month, and there is a one-third chance that it will do so once more before concluding its cycle.

The strongest week for emerging market currencies since January, and the third consecutive weekly increase for oil.