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.
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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 […]
Stocks rallied to start the year, with the S&P 500 climbing 6.3% in January. Bullish inflation data and a lower U.S. dollar provided fuel for the rally. The Federal Reserve slowed interest rate hikes to just a 0.25% increase on February 1st. The milder inflation data and slowing pace of interest rate hikes have led […]
Continue Reading ›2022 was the year markets were reminded of the risks posed by high inflation. Unfortunately for investors, this reminder came at a cost. Higher interest rates, intended to address high inflation, had an adverse effect on stock and bond performance. Bond prices move inversely to interest rates, so as rates rise, bond prices fall. The […]
Continue Reading ›US stocks rallied in November, fueled in part by better-than-expected inflation data early in the month. The S&P 500 recorded its biggest one-day gain of the year, rallying 5.5% on November 10th, following the Bureau of Labor Statistics’ Consumer Price Index (CPI) data release. While inflation remains, markets celebrated continued indications that inflation is easing. […]
Continue Reading ›Stocks rebounded in October, with the S&P 500 gaining 8% and the Dow posting its largest monthly gain since 1976, up 14%. Bond markets stabilized following the U.K.’s abrupt fiscal policy turn towards less deficit-financed spending. For over a decade, bond markets rarely reacted significantly to governments borrowing heavily to fund larger deficits. With high […]
Continue Reading ›The stock market had a significant rally in the first half of the third quarter, followed by another leg down in late August & September that took the major indices back to mid-June lows. Hawkish comments by the Fed regarding inflation pressures caused treasury interest rates to reach 12-year highs. Despite the pain higher interest […]
Continue Reading ›Markets continued to rally in early August on optimism surrounding cooling inflation data, which led investors to think the Fed may begin to take a less aggressive stance on future rate hikes. Fed Chairman Powell, in a speech on the 26th, reiterated the Fed will not be backing down until it is clear victory can […]
Continue Reading ›Stock and bond markets rallied in July, providing some consolation for 2022’s poor first-half performance. Despite high inflation data in June, some investors felt optimistic about the potential for inflation to moderate. Most commodities, including gasoline, copper, lumber, wheat, and corn, saw sharp declines. Import prices also fell, aided by the strong dollar and slowing […]
Continue Reading ›The second quarter was marked by broad declines in bond and stock prices as markets contend with rising interest rates and a weakening economic outlook. Last year, the economy and financial markets were riding a tailwind of stimulus in two forms: 1) significant deficit spending by the federal government and 2) ultra-low interest rate policies […]
Continue Reading ›Major stock market indices ended the month of May roughly flat, following a poor April. 2022 has been a challenging year for risk assets. In general, riskier parts of the market have shed more than the broader market, as one might expect during periods of elevated volatility. Year-to-date, the Dow Jones Industrial Average, composed of […]
Continue Reading ›Stocks and bonds sold off in April as interest rates continued to rise and the U.S. dollar index hit a 20-year high. All else equal, a stronger dollar applies downward pressure to inflation as imports become cheaper. The strengthening dollar and rising interest rates are not unrelated. Europe and Japan’s central banks are hardly budging […]
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