US Equity Markets rallied to new highs last week amid investor relief in an uncontested election and hopes that the outcome could lead to policies that benefit corporate earnings. The S&P 500 rose 4.7% for the week to bring its gains for the year to 25.7%. The Nasdaq was up 5.7% for the week and is now up 28.5% for the year, while the Russell 2000 (small cap stocks) surged 8.6% for the week to bring its gains for the year to 18.4%.
Global Equity Markets posted more muted gains last week following US elections as uncertainty around policy changes including tariffs impact investor thinking. Developed Markets were up 0.3% for the week and are now up 5.4% for the year. Emerging Markets rose 1.2% for the week to bring its gains for the year to 10.9%.
Interest Rates dropped as the Fed announced a 0.25% rate cut, as expected. The yield on the US 10-Year Treasury closed last week at 4.30% vs. the prior week of 4.39%. The Street currently places a 65% probability that the Fed will cut rates by another 0.25% at its meeting in December.
Of Interest to Us
While the composition of the House of Representatives has not yet been fully decided, market returns under a Republican President and Republican Congress have been nicely positive. While market returns are determined by much more than the configuration of Washington, DC, the average annual returns for the S&P 500 with a Republican President and Republican majorities in both the Senate and the House are 12.9%.
Market Data
for the week ending 11/8/2024
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