US Equity Markets were mixed last week with strength in mega-cap technology stocks offset by weakness in the rest of the market. The S&P 500 rose 1.3% for the week to bring its gains for the year to 15.0%. The Equal Weight S&P 500 continues to underperform, down 0.6% for the week and now down 0.4% for the year. The Nasdaq was up 2.4% for the week to bring its gains for the year to 31.8%, while the Russell 2000 (small cap stocks) tumbled 3.2% for the week and is now down 3.2% for the year.
Global Equity Markets struggled last week on interest rate concerns as central bankers pushed back on investor hopes for rate cuts sometime soon. Developed Markets dropped 1.0% for the week and are now up 2.0% for the year. Emerging Markets were flat for the week, up 0.01%, and remain down 1.6% for the year.
US Interest rates bounced back last week following Fed Chairman Powell's comments that there is more work to do to get inflation down. The yield on the benchmark US 10-Year Treasury rose to 4.66% before closing the week at 4.61% vs. 4.52% the prior week.
Of Interest to Us
The US 30-Year Treasury Auction was a disappointment last week, as demand for long-term US Treasuries weakened. There was a broad-based decline in demand for long-term Treasuries both domestically and internationally, with foreign demand the lowest it has been in two years. With rising concerns about the US fiscal situation and spending in Congress continuing to increase, will the future direction of interest rates be less about Fed actions and more about confidence in the ability of the US to meet its long-term obligations?
for the week ending 11/10/2023
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