US Equity Markets posted narrow losses last week as inflation data showed US consumer prices re-accelerating. The S&P 500 dropped 0.2% for the week and is now up 15.9% for the year. The Equal Weight S&P 500 continues to underperform, now only up 4.5% for the year. The Nasdaq was down 0.4% for the week to bring its gains for the year to 31.0%, while the Russell 2000 (small cap stocks) fell 0.2% for the week and is now up 4.9% for the year.
Global Equity Markets rose last week thanks to positive economic data out of China, which raised investor hopes that the Chinese economy is better than feared. Developed Markets rose 1.9% for the week and are now up 7.1% for the year. Emerging Markets were up 1.1% for the week to bring its gains for the year to 2.2%.
US Inflation for consumers turned up in August. The Consumer Price Index (CPI) in August was up 3.7% from a year ago, up from 3.2% in July and 3.0% in June. Core CPI, which excludes food and energy prices, remained elevated at 4.3% from a year ago, though that was down from 4.7% in July. With oil prices rising to their highest level of the year last week at over $91/barrel, the CPI will likely continue to face upward pressure.
Of Interest to Us
While it may have slipped in the first half of September, the Top 5 stocks in the S&P 500 hit a record weighting as of the end of August. At the end of August, the Top 5 stocks in the S&P 500 accounted for 24.4% of the entire index, an all-time record. Even with a modest pullback in some of these names this month, the Top 5 still account for 24.2% of the entire index. We would welcome broader participation in the market rally such that this weighting comes down.
for the week ending 9/15/2023
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