US Equity Markets had a sloppy week last week as concerns about peak growth and the spread the Delta Covid variant initially hurt markets, but a rally late in the week helped several indices hit record highs. The S&P 500 was up 0.4% for the week to bring its gains for the year to 16.3%. The Nasdaq also increased 0.4% for the week and is now up 14.1% for the year, while profit-taking continued in the Russell 2000 (small cap stocks), which dropped 1.1% for the week to reduce its gains for the year to 15.5%.
Global Equity Markets declined again last week as concerns about the Delta Covid variant increased sharply as Japan declared a state of emergency with no spectators permitted at the Olympics. Developed Markets fell 0.5% for the week as Asian equities dropped notably, bringing returns for the year down to 8.8%. Emerging Markets were hit hard last week, down 4.3%, and are now only up 2.1% for the year.
US Interest Rates continued their recent pullback. Concerns from the Delta Covid variant globally combined with Fed commentary reiterating that it will keep rates low for the foreseeable future to drive yields down. The yield on the US 10-Year Treasury hit its lowest level since February at 1.29% before closing the week at 1.36%, down from 1.44% the prior week.
Of Interest to Us
Consumers' appetite for loans appears to be increasing. Data released last week shows that applications for auto loans and credit cards hit a record in March. In addition, consumer demand for auto loans/leases, credit cards, and personal loans increased 39% in April from a year ago and 11% from April 2019.
for the week ending 7/9/2021
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