The Monthly Market Update is part of our ongoing commitment to investor education and research. These posts often spark discussion and provide insight into our perspective on current financial markets and economic events.
Most Recent Update
The S&P 500 entered correction territory in March, at one point declining -10% from its February all-time high. For historical context, the average intra-year decline since 1980 is -14%. With stock valuations already elevated by historical standards, increased policy uncertainty and concerns about potentially slower AI investment contributed to the selloff. Among the many policy […]
U.S. equity markets finished February slightly lower, with the S&P 500 down 1.3%. The technology sector, which comprises about 1/3 of the S&P 500 index, was also down 1.3%, driving the selloff. Investors continued to exercise caution around active international trade negotiations while weighing potential economic policy changes. The chart below shows the Economic Policy […]
Continue Reading ›Markets rebounded in January from a December pullback as investors digested Trump’s day-one executive orders and solid earnings results from the banking sector. At the very end of the month, tariffs for Mexico, Canada, and China were announced. In response, each nation announced or said they will announce retaliatory tariffs or other trade restrictions. Uncertainty […]
Continue Reading ›U.S. stock markets had a second consecutive year of strong gains in 2024 with the S&P 500 and Dow Jones Industrial Average finishing up 25.02% and 14.99% respectively. Strong economic growth, moderating inflation, and improving labor productivity were key factors supporting market strength. Throughout 2024 market valuations climbed to levels last seen during 2020-2021 when […]
Continue Reading ›The beginning of November saw Trump retake the White House along with the Republican party taking control of both the House and Senate by slim margins. What followed has been coined the “Trump Trade,” as markets initially responded positively to the victory. The S&P 500 rose 5% from the 4th to the 11th before cooling […]
Continue Reading ›As investors await election results, the focus in October was on corporate earnings. According to FactSet, 70% of S&P 500 companies reported Q3 2024 earnings results through October 31st. Earnings reports can create big swings in stock prices as investors weigh in on individual companies’ results and outlook. Revenue and earnings estimates are analysts’ forecasts […]
Continue Reading ›Financial assets posted a strong third quarter, with the S&P 500 up 5.89% and the Bloomberg US Aggregate Bond index up 5.20%. Globally, central banks have begun cutting rates due to reduced inflation and rising unemployment risks. The graph below demonstrates how many of the world’s major economies’ interest rates are influenced by one another. […]
Continue Reading ›Equity markets began the month of August a bit choppy as investors digested a Bank of Japan rate hike and higher US unemployment data. As a result, a sharp, but brief, drawdown commenced and the CBOE Volatility Index, or fear index, spiked to a high last seen at the onset of the pandemic in 2020 […]
Continue Reading ›The second half of 2024 kicked off with a shifting global economic landscape shaped by anticipated rate cuts, evolving inflation trends, and large performance differences among stocks/sectors. Treasury yields dropped significantly in July, including the 2, 5, and 10-year benchmarks. Value stocks beat growth stocks by the widest margin in years, with the Russell 1000 […]
Continue Reading ›The post-COVID economic recovery has been notably uneven, often described as “K-shaped”, due to the divergence in economic realities for Americans. Those with substantial assets and high incomes have largely done well. Homeowners with low mortgage rates and no need to take on debt have been insulated from higher interest rates. Strong stock market returns […]
Continue Reading ›Stock indices climbed in May, with the S&P 500 and Dow gaining 4.8% and 2.3% respectively. U.S. Treasury yields ended the month relatively unchanged regardless of maturity. For the last two years, the Federal Reserve Bank has been reducing its holdings of U.S. Treasuries and Mortgage-Backed Securities (MBS) by limiting the reinvestment of maturities and […]
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