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Market Bullets - Weekly Update

For the market week ended Friday, September 27, 2019

  • US Equity Markets declined last week following the launch of an impeachment inquiry on President Trump and reports that the White House may seek to limit US investments into China. As a result, the S&P 500 dropped 1.0% for the week to reduce its gains for the year to 18.2%. The Nasdaq fell 2.2% for the week and is now up 19.7% for the year, while the Russell 2000 (small-cap stocks) was down 2.5% for the week and is now up 12.8% for the year.
  • Global equity markets were also pressured last week, as weak European economic data combined with the uncertainty around US-China trade to weigh on markets. Developed Markets dropped 0.9% for the week to bring its gains for the year to 11.1%. Emerging Markets declined 1.9% for the week and are now up 3.7% for the year.
  • Oil prices dropped 3.8% last week as investors increasingly believe that Saudi Arabia will be able to lift production following the recent drone attacks on its facilities. Increases in US production and rising uncertainty about future demand amid global economic concerns also contributed to the price declines. However, oil prices still remain up 22.6% for the year.

Of Interest to Us...

  • With decades-low unemployment rates, steady wage gains, and low interest rates, the US Consumer has been a notable bright spot boosting both the US and global economies. While US Consumer Confidence remains high, the Consumer Confidence Index dropped to 125.1 in September from 134.2 in August, as anxiety among consumers has increased related to tariffs and trade tensions. This has not yet translated into a retrenchment in consumer spending, though it remains something to watch.
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