US Equity Markets posted their third consecutive week of declines as rising interest rates and growing global economic concerns increasingly weigh on investor sentiment. The S&P 500 dropped 2.1% for the week and is now up 13.8% for the year. The Nasdaq fell 2.6% for the week to bring its gains for the year to 27.0%, while the Russell 2000 (small cap stocks) was down 3.4% for the week and is now up 5.6% for the year.
Ongoing concerns about China given renewed weakness in its real estate markets weighed heavily on Global Equity Markets last week. Developed Markets tumbled 4.4% for the week and are now up 4.3% for the year. Emerging Markets were also down 4.4% for the week to bring its gains for the year to a fractional 0.1%.
US Interest rates hit their highest levels since 2007 last week. The recent rise in rates was stoked by the release of the Fed's July meeting minutes, which suggested that the Fed continues to see upside risks to inflation. The yield on the benchmark US 10-Year Treasury touched 4.31% last week before closing the week at 4.25% vs. 4.17% the prior week and 3.96% a month ago.
Of Interest to Us
Annual Interest Payments on the US debt now exceed US military spending. Given the rise in interest rates over the past 18 months and our ongoing deficits, annual interest payments on the US debt now exceeds $950 billion compared to US military spending of over $850 billion. The last time interest payments exceeded military spending in the US was in 2000.
Market Data
for the week ending 8/18/2023
If you have questions about the markets or would like to talk about your investments, please contact me at [email protected] or via phone at 704.940.3544.
Investors Trust Company helps its clients make sound financial decisions by providing strategic advice and asset management services with a high level of personalized attention. If we may help you or your clients with their investment management needs, please contact one of our Relationship Team members at [email protected].
