US Equity Markets continued their run higher last week, as healthy economic data and enthusiasm over the US-China trade deal overcame the impeachment of President Trump (as expected) by the House. The S&P 500 rallied 1.7% for the week to fresh all-time highs, bringing its gains for the year up to 28.5%. The Nasdaq rose 2.2% for the week and is now up 34.5% for the year, while the Russell 2000 (small-cap stocks) increased 2.1% for the week to bring its gains for the year to 24.0%.
Global equity markets also rose last week on the backs of the US-China trade deal and increasing optimism that a Brexit deal will be completed by the end of January. Developed Markets increased 0.7% for the week to bring its gains for the year to 18.4%. Emerging Markets rose 1.9% for the week and are now up 14.7% for the year.
Interest rates in the US moved higher last week on growing optimism about the outlook for the US economy. The yield on the US 10-Year Treasury rose to 1.91% from 1.82% the prior week. The US 2-Year Treasury ticked up to 1.63% from 1.61% the prior week, resulting in the spread between the 10-Year and 2-Year Treasuries increasing to 0.30%.
Of Interest to Us
US Economic Data from last week continues to point to a healthy US economy. The final estimate for US economic growth (GDP) for the third quarter came in at 2.1%, Personal Spending for November increased more than expected at 0.4%, and inflation data for November remained well in check at an annualized rate of 1.6%. US Consumer-related data remained strong, with Housing Starts for November exceeding forecasts and measures of Consumer Sentiment topping estimates.
for the week ending 12/20/2019
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