US Equity Markets extended their recent run higher last week, closing once again at record highs, helped by largely positive US economic data. The S&P 500 rose 1.7% for the week to bring its gains for the year to 15.9%. The Nasdaq increased 1.9% for the week and is now up 13.6% for the year, while the Russell 2000 fell 1.2% for the week amid its annual index rebalancing to reduce its gains for the year to 16.8%.
Global Equity Markets declined last week as perceived inflammatory comments from Chinese leaders weighed on markets. Developed Markets were down 0.7% for the week as Asian equities were relatively weak. For the year, Developed Markets have risen 9.3%. Emerging Markets dropped 0.2% for the week to bring their gains for the year to 6.7%.
US Economic Data were mostly positive last week. Notably, Payroll gains for June came in at 850K, nicely above expectations of 700K, though the Unemployment Rate ticked up to 5.9% from 5.8%. Initial Weekly Jobless claims hit a post-pandemic low of 364K. Consumer Confidence for June also reached its highest level since before pandemic began.
Of Interest to Us
Since 1928, when the S&P 500 is up over 10% for the first half of the year (as it is this year), the returns for the S&P 500 for the second half of the year are up 74.1% of the time. The average return for the second half of the year has historically been 5.9%, and the median return has historically been 9.6%.
for the week ending 7/2/2021
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