Equities Surge Amid Two-Day Buying Frenzy
Equities traded lower to end last week but staged a rare 5.7% surge over two days. The spark was ignited by extremely oversold conditions and the Reserve Bank of Australia increasing rates by only 25 basis points.
Equities Retreat to New Lows Amid Rising Bond Yields
Equities traded lower this week with the S&P 500 trading at its lowest level of the year.
Focus on the Fed
This week all eyes were focused on the Fed in anticipation of their rate decision. Change was expected, but would it be an increase of 75 basis points or 100 basis points, given the prior week’s report of the Consumer Price Index rising 8.3% year‑over‑year?
Investors are consistently being barraged with a variety of economic and financial market data points. Whether it’s the most recent release of quarterly GDP figures or which stocks saw the biggest price moves during a specific trading session, the onslaught of information is non-stop.
Sustained Volatility
Market participants have been attempting to read the tea leaves, trying to ascertain positioning in the face of a very fluid macro-environment. One thing that has remained elevated is volatility.
Are Equities Setting Up for a Huge Fourth-Quarter Rally?
A sharp rally to end the week resulted in a mixed equity picture. The S&P 500 finished up 0.7%, while the NASDAQ and Russell 2000 finished slightly in the red.
Hot Fun in the Summertime
Positive sentiment toward equities continued into August, until it didn’t. Broad equity benchmarks continued their ascent through mid‑month, which began as of the beginning of this third‑quarter.
Bear Market Rally or New Bull Market?
Equities sold off this week, marking an end to an eight-week run that saw the S&P 500 advance 17%.
Tightening Monetary Policy and Rate Hikes
This week’s release of the Federal Reserve’s (Fed) July meeting minutes drew focus from investors looking to see if any consideration was made by the Fed regarding when it would pivot away from tightening monetary policy and slow down the pace of rate hikes.