US Equity Markets bounced back to close at record highs last week, helped by indications of an infrastructure package coming out of Washington and Fed Chairman Powell's testimony to Congress that recent inflation should be temporary. As a result, the S&P 500 rallied 2.7% for the week to bring its gains for the year to 14.0%. The Nasdaq rose 2.4% for the week and is now up 11.4% for the year, while the Russell 2000 surged 4.3% for the week to bring its gains for the year to 18.2%.
Global Equity Markets also increased last week on rising hopes for an economic rebound. Developed Markets were up 1.6% for the week with European shares continuing to lead the way. For the year, Developed Markets are now up 10.2%. Emerging Markets rose 1.4% and are now up 6.8% for the year.
Inflation Data remains elevated. Data for the month of May showed that the Personal Consumption Expenditures (PCE) Price Index jumped 3.9% year-over-year, up from 3.6% in April. The core PCE Price Index, which excludes food and energy, increased 3.4% year-over-year in May, up from 3.1% in April.
Of Interest to Us
Despite the major equity indices hitting all-time highs last week, only 44% of equities actually hit their highs, while only 13% of stocks hit a one-month high. That tells us that, under the surface, the equity market may not be as strong as the indices suggest, which is something to watch.
for the week ending 6/25/2021
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