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
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 […]
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 […]
Continue Reading ›Stocks broke a five-month winning streak in April as the S&P 500 declined 4.2%, bouncing from an April 18th low of -5.5%. Bonds also declined, with the U.S. Aggregate Bond Index falling about 2.5% as yields rose. The two-year U.S. treasury yield hit 5% for the first time since November, gaining 41 basis points (+0.4%) […]
Continue Reading ›Stocks posted a strong first quarter, with the S&P 500 market-cap weighted index returning 10.6%. The S&P 500 equal-weighted index gained 7.9%, demonstrating broad-based gains across individual stocks. AI-related stocks continued to lead the rest of the market. The Federal Reserve decided to maintain the benchmark interest rate range of 5.25%-5.5% at their March meeting. […]
Continue Reading ›U.S. stock markets finished higher in February, with the S&P 500 +5.2% for the month. Gains were driven by the underlying strength of the economy evidenced by economic data and better-than-expected earnings results, expectations for interest rates, and hype surrounding Artificial Intelligence. In terms of the broader economy, jobs and growth data remain strong, and […]
Continue Reading ›The first month of 2024 echoed the prevailing narrative of late 2023, characterized by moderating inflation, a resilient economy, and the anticipation of imminent interest rate cuts, driving U.S. stock indices to new record highs. Despite suffering its worst single-day loss since September on the final day of the month, triggered by Big Tech earnings […]
Continue Reading ›The end of the year always seems to be when pundits and forecasters come out with a bevy of predictions. We’ll highlight the positives and negatives for markets in the year ahead, but first, let’s have a look at the past year. Coming into 2023, markets faced a general pessimism. Reuters polls of economists put […]
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