The stock market closed last Friday over 9% below its recent peak and is now negative for the year. Interest rates have retreated, with the 10-year yield falling to 3.08%. Many sectors are in or near correction territory, including Financials, Industrials, Materials, and Communication Services.
The stock market had another terrible week, in what has been a very bad month. The Russell 2000 is down 12.5% in October; the Nasdaq Composite is down 10.9%; the S&P 500 is down 8.8%; and the Dow Jones Industrial Average is down 6.7%.
Stocks had a mixed outing this week after suffering heavy losses in the week prior. The benchmark S&P 500 finished flat, leaving its October loss at 5.0%, and the blue chip Dow ticked up 0.4%. Conversely, the tech-heavy Nasdaq fell 0.6%, and the small-cap Russell 2000 lost 0.3%.
A great quote on maintaining composure in volatile situations is often attributed to the boxer Mike Tyson: "everyone has a plan until they get punched in the face." With the S&P 500 tumbling -4.1% last week, many investors may feel a bit roughed up.
This report features world capital market performance and a timeline of events for the past quarter. It begins with a global overview, then features the returns of stock and bond asset classes in the US and international markets.
Well, there's no getting around it - this was an ugly week on Wall Street. After a period of relative calm in the markets, in recent days the increase in volatility in the stock market has resulted in renewed anxiety for many investors.
If you’ve been paying attention to your portfolio’s performance this year, you may be scratching your head as to why the returns have been lackluster. We get it - we’re invested in the same positions as you. Let’s delve into how our primary global asset classes are performing this year.
Wall Street rallied this week with investors shrugging off another tranche of U.S. tariffs on Chinese goods. The S&P 500 and the Dow touched new records - the first time that's happened for the Dow since January 26 - and finished the week with respective gains of 0.8% and 2.3%. The Nasdaq lagged, slipping 0.3%.
Wall Street returned to its winning ways this week, powering through trade-related headlines and Hurricane Florence, one of the strongest storms to hit the Carolinas in decades. The S&P 500 advanced 1.2%, the tech-heavy Nasdaq rose 1.4%, and the blue-chip Dow Jones climbed 0.9%.
The Three-Week Rally Comes to an End as Tech Shares Slide. Investors returned from the extended Labor Day weekend in a selling mood, pulling stocks away from last week's record highs. The S&P 500 ended the week with a loss of 1.0%, while the tech-heavy Nasdaq Composite dropped 2.6%. The Dow Jones Industrial Average showed relative strength, but still finished lower by 0.2%.
After returning to record territory last Friday, the S&P 500 headed even higher this week, adding 0.9% in total. The tech-heavy Nasdaq outperformed, adding 2.1%, and the Dow also advanced, tacking on 0.7%.
The current bull market is now officially the longest on record, surpassing the 1990's bull run. Over the past nine and a half years, the S&P 500 index has risen 325%, the Dow Jones Industrial Average 294%, and the NASDAQ Composite 526%.
The S&P 500 clawed back to record territory this week, closing Friday at a new high for the first time since January 26. Political uncertainty, trade ambiguity, and strengthened expectations for two more rate hikes this year all failed to dissuade motivated buyers, who pushed stocks higher in three of the week's five sessions.
From 1928-2017 the value premium (value stock returns minus growth stock returns) in the US had a positive annualized return of approximately 3.5%. In seven of the last 10 calendar years, however, the value premium in the US has been negative.
Market Downturns – Never Fun, Never Easy