Investors reassessed and markets bounced.
Last week, major U.S. stock indices moved higher for the first time in weeks. The Dow Jones Industrial Average gained 6.2 percent, the Standard & Poor’s 500 Index was up 6.6 percent, and the Nasdaq Composite rose 6.9 percent, reported Ben Levisohn of Barron’s.
The change in investor attitude may have been influenced by a variety of factors, including:
“The rally…extended on Wednesday when the Federal Reserve, while acknowledging that it will lift interest rates further in the next couple of meetings, implied that it may slow down the pace of rate hikes if the economy continues to slow down,” reported Jack Denton and Jacob Sonenshine of Barron’s.
While last week’s U.S. stock market rally was appreciated, markets are likely to remain volatile for some time.
Data as of 5/27/22 | 1-Week | Y-T-D | 1-Year | 3-Year | 5-Year | 10-Year |
Standard & Poor's 500 Index | 6.6% | -12.8% | -1.0% | 14.1% | 11.5% | 12.1% |
Dow Jones Global ex-U.S. Index | 2.5 | -13.4 | -15.2 | 3.5 | 1.9 | 3.9 |
10-year Treasury Note (yield only) | 2.7 | N/A | 1.6 | 2.2 | 2.2 | 1.7 |
Gold (per ounce) | 1.0 | 1.7 | -2.1 | 13.2 | 8.0 | 1.6 |
Bloomberg Commodity Index | 2.5 | 35.0 | 44.3 | 19.0 | 10.0 | 0.1 |
S&P 500, Dow Jones Global ex-US, Gold, Bloomberg Commodity Index returns exclude reinvested dividends (gold does not pay a dividend) and the three-, five-, and 10-year returns are annualized; and the 10-year Treasury Note is simply the yield at the close of the day on each of the historical time periods.
Sources: Yahoo! Finance; MarketWatch; djindexes.com; U.S. Treasury; London Bullion Market Association.
Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. N/A means not applicable.
WHAT DID YOU SAY? Idioms are phrases that don’t mean what they say. For example, imagine you hear a person say, “That’s a piece of cake!” The odds are you won’t look around for a slice of German Chocolate because you know they don’t mean it literally. They’re using an idiom to indicate that a task is easy.
There are lots of money and financial idioms. See what you know about financial phrases by taking this brief quiz.
What money idioms do you use frequently?
Weekly Focus – Think About It
“It's not about what it is, it's about what it can become.”
—Dr. Seuss, The Lorax
Answers:
https://www.barrons.com/articles/the-stock-market-finally-had-a-winning-week-why-it-might-not-last-51653696540?refsec=the-trader&mod=topics_the-trader (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2022/05-31-22_Barrons_The%20Stock%20Market%20Finally%20Had%20a%20Winning%20Week_1.pdf) https://advantage.factset.com/hubfs/Website/Resources%20Section/Research%20Desk/Earnings%20Insight/EarningsInsight_052722.pdf
https://www.bea.gov/news/2022/personal-income-and-outlays-april-2022
https://www.goodreads.com/author/quotes/61105.Dr_Seuss?page=2
https://www.collinsdictionary.com/us/dictionary/english/ballpark
https://www.phrases.org.uk/meanings/bring-home-the-bacon.html