US Equity Markets saw profit-taking last week following the strong post-election gains as interest rates moved higher following comments by Fed Chairman Powell. The S&P 500 fell 2.1% for the week to bring its gains for the year to 23.1%. The Nasdaq dropped 3.2% for the week and is now up 24.4% for the year, while the Russell 2000 (small cap stocks) tumbled 4.0% for the week to bring its gains for the year to 13.7%.
Global Equity Markets declined last week amid weaker-than-expected economic growth out of Europe. Developed Markets were down 2.4% for the week and are now up 2.9% for the year. Emerging Markets decreased 4.5% for the week to bring its gains for the year to 6.0%.
Interest Rates increased last week as Fed Chairman Powell suggested the Fed was in no hurry to lower rates further. The yield on the US 10-Year Treasury closed last week at 4.44% vs. the prior week of 4.30%. Despite Powell's comments, the Street is still placing a 62% probability that the Fed will cut rates by another 0.25% at its meeting in December.
Of Interest to Us
The dividend yield on the S&P 500 hit its lowest level in over 20 years last week. The dividend yield on the S&P 500 reached 1.18% last week, its lowest level since February 2001 when the yield hit 1.17%. This is in part due to the strength in Technology stocks, which typically pay lower (if any) dividends and currently account for roughly 32% of the overall market. The highest dividend yield for the S&P 500 since 2001 was 4.1% in March 2009.
Market Data
for the week ending 11/15/2024
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