The NASDAQ Index Surges to Best Calendar Start Since 2000
Positive equity momentum continued this week as the S&P 500 gained 2.2%. Despite yields moving higher, the NASDAQ fared even better with a 3.3% advance, which is a little bit of a character change.
Equities continued to rise last week as virtually all major market indices moved higher. For domestic markets, small-cap stocks led the way as the Russell 2000 Index returned 1.8%. Large-cap and mid-cap stocks also moved higher with weekly returns of 0.5% and 0.8%, respectively.
Equities Begin the Year with Strong Gains
After a weak ending in 2022, equity markets are off to a good start in 2023. The S&P 500 is up 3.4% to begin the year while the NASDAQ and Russell 2000 are both up about 4.5%.
Happy New Year!
Asset class returns have exhibited a welcome respite from that of 2022. Bonds have rallied 1.1% over the last week as interest rates have declined.
Equities End the Year on a Sour Note
Equities were down on the week as December will once again disappoint consensus expectations. The narrative was spun that December is historically one of the best months of the year from an equity performance standpoint and therefore we should expect a sharp year-end rally.
As traders turn off their screens and head for the doors for a long weekend, market data was full of mixed signals. Mister Market was more Krampus than Santa Claus this week sending both bonds and stocks lower -1.2% and -2.9% respectively.
As we approach 2023, please find the following articles from the BTC Capital Investment Team, discussing top economic themes and their potential impact in the New Year.
The two dominant themes running through the U.S.
We presume all cannot wait for 2022 to say goodbye. U.S. equities, as measured by the Russell 3000 Index, are currently down 19.8% year-to-date (YTD), which may be its worst calendar-year drawdown since 2008 ( 37.3%).