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
U.S. stocks continued to grind higher in August, with the S&P 500 advancing 1.9% and notching a new record high late in the month. The Dow and Nasdaq also posted gains, marking the fourth consecutive monthly increase for the major indices. Volatility remained muted as investors weighed a mix of softer labor data, ongoing debate […]
July marked another positive month for U.S. equities, with the S&P 500 and Dow Jones Industrial Average posting gains of 2.8% and 1.3%, respectively. A majority of S&P 500 companies reported second quarter earnings results during the month. Aggregate S&P 500 earnings are on track for an all-time high while easily clearing the prior year’s […]
Continue Reading ›All major U.S. stock market indices posted another strong quarter of gains as the economy continued to reopen. The confluence of pent-up demand, prior government stimulus, and record household savings fueled robust consumer spending. The pandemic-induced shift in spending to goods continued early in the quarter. Spending began to shift back to services later in […]
Continue Reading ›The S&P 500 index managed a modest gain of 0.5% in May on muted volatility. Inflation continues to dominate headlines as several commodities reached all-time highs and consumer price indices saw their largest spikes in decades. The major central banks of the world continue to view recent inflation as transitory. The Federal Reserve is willing […]
Continue Reading ›The S&P 500 advanced 5% in April as treasury yields stabilized following a significant run-up in the first quarter. First quarter GDP results were released at the end of April, showing 6.4% real growth and 10.7% nominal growth, annualized. Retail sales and goods consumption soared in March as more stimulus boosted personal incomes. The wave […]
Continue Reading ›The first quarter of 2021 featured vaccinations and falling COVID cases, hospitalizations, and deaths. Enthusiasm for a reopening and more fiscal stimulus raised expectations for US economic growth. As investor optimism improved over the quarter, a change in performance leadership – “rotation” – accelerated. Cyclical industries, which tend to perform well in a strong economy, […]
Continue Reading ›February marked an acceleration of investor optimism for a strengthening economy. Amidst the backdrop of falling COVID cases, vaccination progress, and House passage of a $1.9 Trillion stimulus bill, the S&P 500 index rose 2.6% for the month. Cyclical sectors like energy, financials, and industrials led the market. Perhaps more encouraging for the economy, is […]
Continue Reading ›By now, many have heard of the recent drama surrounding GameStop, AMC, and several other stocks making huge moves in the last week. GameStop shares traded from $61 to $483 in the final week of January. Media coverage has been unclear and generally failed to explain some of the underlying dynamics at work, so we […]
Continue Reading ›2020 was a year no one could make up. As the year ends, what are investors looking towards in 2021? All hinges on the speed and success of Operation Warp Speed’s vaccination efforts. It will probably take most of 2021 to roll out the vaccine to nearly all adults but giving priority to elderly and […]
Continue Reading ›As the stock market climbs to new all-time highs, a little noticed trend has emerged in the longer maturities of the Treasury market. Interest rates for the 10-year Treasury bottomed at 0.50% on August 6 and climbed to 0.98% on November 9 with the announcement of the first COVID-19 vaccine trial results. 10-year yields are […]
Continue Reading ›The U.S. Bureau of Economic Analysis released third quarter Gross Domestic Product (GDP) results on October 29th, showing the economy staged a strong rebound. In the third quarter, GDP rose at a seasonally adjusted annual rate of 33.1%, following the second quarter decline of 31.4%. Annual conversions of quarterly figures magnify changes. The below chart […]
Continue Reading ›As September came to a close, we are now 6 months from the bear market bottom of March 23rd. The market looks vastly different today than it did one year ago, but the S&P 500 is up 8.2% for the 1-year period ending on September 23rd. This compares favorably to the average returns over the […]
Continue Reading ›The S&P 500 closed August up 7%, pushing the index above its pre-COVID high set in February. Market momentum continued to accelerate from prior strength. Technology stocks and large-cap stocks continued to lead the market, maintaining the 2020 trend. However, in a positive sign for the broader market and economy, some more economically cyclical sectors […]
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