Weekly Market Commentary April 9, 2018

Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.

Continued concerns over the risk of a trade war pushed markets lower, and a slowing economy pushed stocks lower. The S&P 500 fell 1.4% last week. The global MSCI ACWI dropped 0.7%, and the Bloomberg BarCap Aggregate Bond Index dipped 0.1%.

The declines reflect investors’ concerns the back and forth between the U.S. and China could reduce global trade and economic growth, pushing corporate profits lower. Global economic reports, including the U.S. jobs number discussed below, are generally missing expectations. Our view is concerns over trade and economic decline are both overdone. As previous updates have mentioned, we expect a very public negotiation on trade and steady, but not spectacular, economic growth. This week’s events affirmed our basic outlook.


Key points for the week

  • Stocks fell as protectionist concerns increased.
  • Economic data remains solid but has dipped below heightened expectations.
  • The U.S. economy produced 103,000 jobs, falling short of expectations.

Market Perspective

The U.S. jobs report for March was released on Friday, displaying somewhat disappointing figures. Though the numbers were below what many analysts predicted, they still showed signs of a healthy economy. Analysts forecasted job growth around 185,000 jobs, but only 103,000 jobs were created and unemployment stayed at 4.1% for the sixth consecutive month. The metric most concerning for investors has been wage growth due to the threat of increased inflation. The report showed year-over-year wage growth at 2.7%, a modest number given the consistent levels of unemployment and average job growth of 200,000 per month.


Fun story of the week

Jack Nicklaus’ grandson hits hole-in-one

A touching moment happened during the annual Par-3 contest, which takes place a day before the Master’s Tournament begins. Pro golfers often bring family onto the course to hit a shot or two on the final hole, and Jack Nicklaus’s grandson hit a hole-in-one. A celebration ensued that brought Nicklaus to tears — a proud moment for the grandfather and golf legend.


 

 

 

Share:
facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.
Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.

RECENT POSTS

Market Commentary: S&P 500 Rallies 6.5%, Lifting Market Above Bear Level

The S&P 500 spent only a short time below the 20%-decline threshold, before jumping back above it last week. U.S. large-cap stocks rallied 6.5% based on optimism that inflationary pressures are starting to respond to higher interest rates.

Market Commentary: Fed Raises Rates by 0.75%, Market Moves Into Bear Territory

The S&P 500 dropped 5.7% last week and is now 22.3% off its peak. This decline pushed the index of large-cap U.S. stocks into a bear market, which is defined as a 20% or greater drop from its peak. Volatility remained elevated, and the S&P 500 has now moved by 1% or more 60 times …

Special Market Commentary: S&P 500 Slips Into a Bear Market. Now What?

Fueled by inflation readings that have remained stubbornly elevated, the stock market, measured as the S&P 500 Index, entered bear market territory at market close on June 13, 2022.  A bear market represents a decline in equity values by more than 20%.

Market Commentary: Inflation Pressures Remain High, S&P Dips Again

The S&P 500 dropped 5.1% last week as investors digested new inflation data released on Friday. May’s Consumer Price Index (CPI) report showed a reacceleration of inflation after a brief reprieve in April. Headline CPI increased 8.6%, which is the fastest pace since December 1981. The p …
1 2 3 67 68 69

Get in Touch

In just 15 minutes we can get to know your situation, then connect you with an advisor committed to helping you pursue true wealth.

Schedule a Consultation

TweetsFollow Us