US Equity Markets bounced back last week as a rally in mega-cap Tech stocks overcame weakness in other areas following hotter-than-expected inflation data. The S&P 500 rose 1.8% for the week and is now up 0.3% for the year. The Nasdaq was up 3.1% for the week though remains down 0.3% for the year, while the Russell 2000 (small cap stocks) dropped a fractional 0.01% for the week and remains down 3.8% for the year.
Global Equity Markets were mixed last week, as a surge in Japanese equities offset modest weakness in European markets. Developed Markets were up 0.7% for the week but remain down 0.5% for the year. Ongoing declines in China weighed on Emerging Markets, down 0.6% for the week and now down 2.7% for the year.
US Inflation Data for December came in worse than expected. The Consumer Price Index (CPI) for December showed price increases of 3.4% from a year ago, up from 3.1% in November and above forecasts of 3.2%. Core CPI, which excludes food and energy prices, rose 3.9% in December from a year ago, down from 4.0% in November but worse than the 3.8% expected.
Of Interest to Us
The 10 Largest Stocks in the S&P 500 now have the largest weight in the index in over 40 years. The top 10 largest weights in the S&P 500 represent 32.1% of the total index weight. That is highest level since 1980 when the 10 largest stocks accounted for about 26% of the index. By comparison, the 10 largest stocks comprised 19% of the S&P 500 in both 2010 and 2015 and about 20% in 2005.
Market Data
for the week ending 1/12/2024
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