Last week, the S&P 500 hit new record highs, fully recovering from last year's market pullback. This market rebound took four months which, coincidentally, is exactly the historical average for bounce-backs after market corrections. This occurred despite the fact that the market decline nearly reached bear market levels.
The S&P 500 (+1.2%) and Nasdaq Composite (+1.9%) each posted solid gains this week while setting new closing highs in the process. Strength in the U.S. economy and solid earnings reports from mega-cap companies contributed to the week's upside bias.
This report features world capital market performance and a timeline of events for the 1st Quarter 2019. It begins with a global overview, then reports the returns of stock and bond asset classes in the US and international markets. We hope you find it helpful.
The S&P 500 increased 0.5% this week, as a strong earnings report from JPMorgan Chase (JPM) and a positive response to Walt Disney's (DIS) upcoming new streaming service helped the broader market overcome weakness from the health care stocks.
Over the last several years, index funds have received increased attention from investors and the financial media. Some have even made claims that the increased usage of index funds may be distorting market prices.
The stock market rally carried over into the second quarter, with the S&P 500 gaining 2.1% this week, extending its winning streak to seven straight sessions and setting a new closing high for the year. Investor sentiment was boosted by positive manufacturing data, progressing U.S.-China trade talks, and a Goldilocks Employment Situation Report for March.
The stock market has rebounded significantly in 2019 despite on-going economic and political uncertainty. As always, as we begin Q2 it's important for long-term investors to stay disciplined and maintain perspective.
We’ve received a handful of phone calls from clients asking if they should purchase some Boeing stock in the wake of the recent grounding of the 737 MAX 8 aircraft. The stock price declined nearly 12% over a two-day period from Monday, March 11th through Tuesday, March 12th, falling from $422.54/share to $375.41/share.
It definitely got ugly on Friday. The S&P 500 lost 0.8% this week in a tale of two trading narratives. The first narrative lifted the S&P 500 to a new 2019 high on the notion that low U.S. Treasury yields and a dovish Fed were a boon for risk assets.
Interest rates have been a conundrum for investors, economists and policymakers over the past ten years. Despite steady U.S. economic growth and an unemployment rate near historic lows, long-term interest rates have remained anchored.
The S&P 500 gained 2.9% this week, supported by a sidelined Federal Reserve, persistently low U.S. Treasury yields, and a weakening dollar. In addition, key leadership from Apple (AAPL) and semiconductor stocks helped the S&P 500 set a new high for 2019 and closed at its highest level since Oct. 10.
A quick online search for “Dow rallies 500 points” yields a cascade of news stories with similar titles, as does a similar search for “Dow drops 500 points.”
The S&P 500 lost 2.2% this week, as concerns about global growth underpinned a risk-off mindset. With a confluence of discouraging data, news, and technical drivers, the market succumbed to profit-taking interest after its strong start to the year.
What We Can Learn From This Market Recovery