There was a decline in domestic equity markets this week. The S&P 500 Index was down 2.01%. Global increases in COVID-19 cases have led to increased fears of a pronounced “second-wave.” The Google Activity Index, the blue line in the graph below, shows increasing global mobility as lockdowns ease.
Equity markets fell sharply last Thursday in what was the largest drop since March. The S&P 500 was down almost 6% as COVID-19 cases are rising around the globe. Stocks would claw their way back with the S&P 500 ending down 2.4% for the week.
We received some significant news from the Federal Reserve (Fed) this week. The Fed indicated they could keep rates where they are until 2022. “We’re not thinking about raising rates.
Equity markets continued to move higher this week as the re-opening process continues. The S&P 500 added 2.9% while foreign equities were especially strong. Emerging markets gained 6.6% and foreign developed jumped 6.3%.