Politics overshadowed trade again this week with House Speaker Pelosi’s announcement of a formal impeachment inquiry into President Trump. The equity markets reaction reflects concern that the inquiry might imperil Congress’ approval the USMCA agreement and hold up spending bills. The resulting “risk off” sentiment led to across-the-board weekly declines as the Russell 2000® Index declined 2.52%, followed by Nasdaq (‑2.19%), S&P 500® Index (-1.01%) and Dow Jones Industrial Averag… View More
The equity markets, following three consecutive weekly gains, declined last week as concerns relating to trade, Federal Reserve policies and oil supplies weighed on market sentiment. The Russell 2000® Index fell 1.17%; losses for the other indices included the Dow Jones Industrial Average (-1.05%), Nasdaq (‑0.72%) and S&P 500® (-0.51%). The week began with news of drone attacks, purportedly by Iran, on Saudi Arabia’s production facilities; the impact on production, 5.7 million barrels … View More
Positive trade-related commentary from the U.S. and China provided momentum as markets rebounded from oversold conditions for many cyclical stocks. The Russell 2000® Index rose 4.85%, its best weekly gain since 2016. The Dow Jones Industrial Average (1.57%), the S&P 500® Index (0.96%) and the Nasdaq (0.91%) were also positive for last week. Some analysts note that a trade deal might provide a greater upside for value stocks over growth stocks; indeed, this week’s gains in the Russell 200… View More
Equity markets continued to rally last week as the U.S. and China announced plans to meet again in early October. The S&P 500® Index (1.79%) led the major indices, followed by Nasdaq (1.76%), Dow Jones Industrial Average (1.49%) and the Russell 2000® Index (0.69%). New tariffs went into effect on September 1st; and the markets, in the absence of progress in trade negotiations, reacted negatively. Also, the release of the July ISM Manufacturing Index, which fell below 50 for the first time … View More
The equity markets rebounded last week to close the month on a positive note. The Dow Jones Industrial Average (3.02%) led the major indices, followed by the S&P 500® Index (2.79%), Nasdaq (2.72%) and Russell 2000® Index (2.42%). Commentary from the U.S. and China seemed to suggest that both sides want to continue trade discussions; the previously scheduled September meeting has not been canceled. Also, China has not responded to the latest tariff increases from the U.S.; and Chin… View More