Stocks Trade Higher as Market Reacts to Election Results
The U.S. presidential election results fueled November’s stock market rally, as investors focused on the incoming administration’s policy agenda and its implications. The S&P 500 gained +6.0%, its biggest monthly return since November 2023
Treasury Yields Rise Following the Fed’s September Rate Cut
Stocks finished October lower as investors navigated Q3 earnings, the upcoming election, and uncertain Federal Reserve policy. The S&P 500 posted its first monthly loss since April, lowering its year-to-date return to.
Federal Reserve Set to Begin Cutting Interest Rates in September
Stocks traded higher in August despite an early-month selloff. The S&P 500 dropped over -5% in the first week after a report showed unemployment rose to 4.3% in July…
The Stock Market Experienced a Big Rotation in July
Last week U.S. equity indices once again posted mixed performance in volatile trading as investors assessed the latest economic data and corporate earnings results…
Global Markets Trade Higher After April Sell-Off
The S&P 500 set a new all-time high in May after trading lower in April. The technology-heavy Nasdaq 100 Index gained +6.2% and set a new all-time high, with mega-cap stocks like Nvidia, Apple, Microsoft, and Facebook-parent Meta leading the recovery…READ MORE
Rising Treasury Yields Cause Stocks & Bonds to Trade Lower
Stocks continued their upward trajectory in early 2024. The S&P 500 returned more than 10% for a second consecutive quarter, setting multiple new all-time highs along the way. Notably, this quarter saw…
Stocks Trade Higher in February as the Rally Broadens Out
The S&P 500 Index gained +5.2%, underperforming the Russell 2000 Index’s +5.6% return. All eleven S&P 500 sectors traded higher, with cyclical sectors outperforming…
Multiple Stock Market Indices Set New All-Time Highs in January
Financial markets underwent a sizeable shift in the fourth quarter. Treasury yields, which spiked in Q3, reversed lower as inflation eased and the Federal Reserve hinted at interest rate cuts in 2024…
S&P 500 Registers its Biggest Monthly Gain Since July 2022
Stocks Trade Higher as Treasury Yields Reverse Lower
The big story during November was the decline in Treasury yields. The bond market experienced large moves in interest rates, with the 10-year Treasury yield falling to 4.36% from over 5% in October. For context, the -0.54% decline in the 10-year yield ranks among the biggest 1-month drops since December 2008, when the Federal Reserve cut interest rates by -0.75%. Falling Treasury yields provided relief to bonds, which have traded lower as the Federal Reserve hikes rates. The Bloomberg U.S. Bond Aggregate Index, which tracks a broad index of U.S. bonds, produced a +4.6% total return. It was the index’s first gain in seven months and its biggest gain since 1985.
Stocks & Bonds Trade Lower as Interest Rates Continue to Rise
Monthly Market Summary
The S&P 500 Index declined -2.2% in October but outperformed the Russell 2000 Index’s -6.9% decline. The Utility sector was the top-performing S&P 500 sector, while Energy and Consumer Discretionary led to the downside.
Corporate investment-grade bonds produced a -2.4% total return in October, underperforming corporate high-yield bonds’ -1.0% total return.
