Weekly returns
Equity market data as of August 11, 2023, reveals the following trends. In the last week, U.S. equity size and style total returns displayed variations of 0.3%, -0.4%, and -1.0% for large, medium, and small company sizes, respectively. Under style categories, the returns for value, core, and growth were -0.5%, -0.6%, and -1.1% respectively. Looking at year-to-date figures, returns were 7.1%, 17.3%, and 28.1% for large, medium, and small sizes, while style-wise, value, core, and growth demonstrated returns of 7.0%, 9.9%, and 14.3% respectively.
Market indices as of the same date showed the Dow Jones Industrial Average with a 0.7% one-week return and a year-to-date return of 7.8%. The NASDAQ Composite Index recorded -1.9% for the week and 31.0% year-to-date. The S&P 500 Index showed -0.3% for the week and 17.4% year-to-date. Meanwhile, the MSCI EAFE Index displayed -0.6% for the week and 12.2% year-to-date. The Cboe Volatility Index, reflecting market volatility, reported a -3.5% weekly return but a year-to-date decline of -23.9%.
In terms of international and developed markets, the last week brought -0.6% and a year-to-date return of 12.2% for EAFE. Europe displayed a slight decrease of -0.3% in the last week but maintained a year-to-date return of 14.3%. France remained stable at 0.0% for the week but exhibited a year-to-date return of 18.7%. Germany saw a -1.2% weekly decline yet maintained a year-to-date return of 17.3%. Italy showed a -1.3% weekly return while maintaining a year-to-date return of 26.8%. Japan displayed a -1.0% weekly return and a year-to-date return of 13.3%. Spain, on the other hand, experienced a 0.5% weekly increase and a 21.9% year-to-date return. Switzerland showed a -0.6% weekly return with a year-to-date return of 12.6%. Finally, the U.K. experienced a slight decrease of -0.2% in the past week but maintained a year-to-date return of 9.1%.
Turning to emerging markets, there was a -1.9% decline in the past week, resulting in a year-to-date return of 6.6% for EM. Brazil displayed a -1.7% weekly return but held a year-to-date return of 15.9%. China reported a significant -3.7% weekly decline and a year-to-date return of -1.2%. India showed a marginal decline of -0.3% in the last week but demonstrated a year-to-date return of 6.3%. Indonesia, however, experienced a positive trend with a 0.5% weekly increase, leading to a 10.7% year-to-date return. Korea displayed a -2.3% weekly decline, with a year-to-date return of 14.1%. Mexico reported a -1.2% weekly decline but a 27.0% year-to-date return. Russia's data was not available, while Taiwan showed a -1.6% weekly return and a 16.5% year-to-date return.
In the S&P 500 sectors, the last week saw a -0.3% decline, resulting in a 17.4% year-to-date return for the S&P 500 Index. Communication services displayed a 0.3% weekly increase, maintaining a strong year-to-date return of 42.1%. Consumer discretionary reported a -1.0% weekly decline but maintained a 34.0% year-to-date return. Consumer staples, on the other hand, displayed a 0.3% weekly increase and a year-to-date return of 2.3%. Energy experienced a notable 3.6% weekly increase, with a year-to-date return of 4.2%. Financials reported a steady week and a 3.1% year-to-date return. Healthcare saw a significant 2.5% weekly increase but had a modest 0.6% year-to-date return. Industrials displayed a 0.6% weekly increase and an 11.8% year-to-date return. Information tech experienced a notable decline of -2.8% in the past week but held a strong 36.4% year-to-date return. Materials reported a -1.0% weekly decline with a 7.5% year-to-date return. Real estate showed a 0.9% weekly increase and a 2.8% year-to-date return, while utilities reported a 1.0% weekly increase but a -7.0% year-to-date return.
As of August 11, 2023, the data on U.S. fixed-income and related measures is as follows. In the past week, there were marginal fluctuations of 0.0%, -0.4%, and -1.1% for high credit quality investments across different interest-rate sensitivities: limited, moderate, and extensive. Within the medium credit quality category, there were declines of -0.1%, -0.6%, and -1.0% for the same sensitivities. For the low credit quality tier, there was a minor improvement of 0.4%, 0.3%, and 0.2% across the sensitivities. Looking at year-to-date trends, high credit quality bonds exhibited returns of 2.2%, 0.8%, and -2.5% for limited, moderate, and extensive sensitivities. In the medium credit quality category, the returns were 1.5%, 0.9%, and 1.8%. For the low credit quality category, returns stood at 6.8%, 6.6%, and 5.8% across the sensitivities.
U.S. Treasury bond yields as of the same date indicated the following changes. The 2-year Treasury bond yield was 4.90%, an increase from the prior year-end figure of 4.42%, reflecting a change of 48 basis points (BPS). The 10-year Treasury bond yield stood at 4.17%, up from the prior year-end rate of 3.88%, resulting in a change of -29 BPS. The 30-year Treasury bond yield was 4.27%, compared to the prior year-end rate of 3.97%, showing a change of -30 BPS. The yield spread between the 2-year and 10-year Treasury bonds was -73 BPS, down from -54 BPS, indicating a decline of -19 BPS. The yield spread between the 10-year and 30-year Treasury bonds was -10 BPS, down from 9 BPS, resulting in a change of -19 BPS.
In the U.S. bond sector, recent trends show the following changes. Over the past week, the Aggregate bond sector reported a decline of -0.6%, with a year-to-date return of 0.6%. Bank loans displayed a positive trend with a 0.4% weekly increase and a year-to-date return of 7.0%. Convertible bonds reported a decline of -0.6% in the past week but held a year-to-date return of 9.3%. Corporate bonds showed a decline of -0.8% in the past week, resulting in a year-to-date return of 2.2%. High yield bonds demonstrated a positive weekly return of 0.3%, with a year-to-date return of 6.6%. Mortgage-backed securities (MBS) reported a -0.8% decline for the week, leading to a year-to-date return of 0.1%. Municipal bonds showed a 0.4% increase in the past week and a year-to-date return of 2.2%. Preferred stocks reported a modest 0.2% increase in the past week, with a year-to-date return of 10.6%. Treasury Inflation-Protected Securities (TIPS) reported a -0.6% decline in the past week and a year-to-date return of 0.9%. Lastly, Treasury bonds reported a -0.6% decline in the past week, with a year-to-date return of 0.1%.
Global bond trends, covering the same period, revealed the following. EM Local bonds reported a minor decline of -0.1% in the past week but maintained a year-to-date return of 9.2%. EMD USD bonds displayed a positive trend with a 0.2% weekly increase, resulting in a year-to-date return of 5.0%. The Global Agg bond category showed a decline of -0.8% for the week, with a year-to-date return of 0.6%. Similarly, the Global Agg Ex-U.S. bond category reported a decline of -0.8% in the past week and a year-to-date return of 0.6%. The Multiverse bond category also reported a decline of -0.7% in the past week, resulting in a year-to-date return of 0.9%.
Lastly, in the commodities and currencies sectors, the data as of the same date indicated the following changes. In commodities, the BBG Commodity Index reported a minor decline of -0.2% in the past week, with a year-to-date return of -3.5%. Oil (WTI) displayed a positive trend with a 0.5% weekly increase and a year-to-date return of 6.6%. Gold, however, reported a decline of -1.4% in the past week but maintained a positive year-to-date return of 4.9%.
In terms of currencies, the USD exchange rates indicated the following changes. Emerging market currencies (EM FX) showed a marginal decline of -0.1% in the past week but maintained a year-to-date return of 5.0%. The Australian Dollar (AUD) reported a decline of -1.1% in the past week and a year-to-date return of -3.9%. The Canadian Dollar (CAD) also declined slightly by -0.4% in the past week but held a positive year-to-date return of 1.0%. The Swiss Franc (CHF) reported a marginal decline of -0.4% in the past week but maintained a year-to-date return of 5.7%. The Euro (EUR) displayed a minor decline of -0.5% in the past week, with a year-to-date return of 2.8%. The British Pound (GBP) reported a marginal decline of -0.3% in the past week and a year-to-date return of 5.7%. Finally, the Japanese Yen (JPY) displayed a notable decline of -2.0% in the past week, resulting in a year-to-date return of -8.8%.
Previous update:
As of August 4, 2023, the total returns for U.S. equity size and style categories show performance figures for the past week and year-to-date. Large-cap stocks had a -1.5% return for the week, while medium-cap and small-cap stocks returned -1.6% and -0.6%, respectively. In terms of investment styles, value stocks had a -2.2% return for the week, core stocks returned -1.9%, and growth stocks showed a -1.2% return. Year-to-date, large-cap stocks returned 6.8%, medium-cap stocks returned 7.5%, and small-cap stocks returned 8.5%. For investment styles, value stocks had a 17.7% return, core stocks returned 10.6%, and growth stocks showed a 12.1% return.
The index and market total returns as of August 4, 2023, display the performance of various key indices. The Dow Jones Industrial Average closed at 35,065.6, experiencing a -1.1% return for the week and a 7.0% return year-to-date. The NASDAQ Composite Index closed at 13,909.2, returning -2.8% for the week and 33.5% year-to-date. The S&P 500 Index closed at 4,478.0, with a -2.3% return for the week and a 17.8% return year-to-date. The MSCI EAFE Index closed at 2,143.2, returning -2.4% for the week and 12.9% year-to-date. Lastly, the Cboe Volatility Index closed at 17.1, showing a 28.5% return for the week but a -21.2% return year-to-date.
Looking at international and developed markets, various countries show weekly and year-to-date returns. The EAFE (Europe, Australasia, and the Far East) index returned -2.4% for the week and 12.9% year-to-date. Among specific European countries, France returned -2.3% for the week and 18.7% year-to-date, while Germany showed a -3.3% return for the week and 18.7% year-to-date. Italy returned -3.0% for the week and 28.5% year-to-date, and the U.K. returned -2.5% for the week and 9.3% year-to-date. Other countries like Japan (-1.8% weekly, 14.5% YTD), Spain (-3.8% weekly, 21.3% YTD), and Switzerland (-2.5% weekly, 13.3% YTD) also display varying returns.
In emerging markets, countries show weekly and year-to-date returns as well. The overall EM (Emerging Markets) index returned -2.4% for the week and 8.7% year-to-date. Among specific countries, Brazil returned -3.3% for the week and 17.9% year-to-date, while China showed a -1.1% return for the week and 2.5% year-to-date. India returned -1.2% for the week and 6.6% year-to-date, and Indonesia returned -0.5% for the week and 10.1% year-to-date. Other countries like Korea (-3.9% weekly, 16.7% YTD), Mexico (-4.2% weekly, 28.5% YTD), and Taiwan (-3.4% weekly, 18.4% YTD) also display varying returns.
The data also includes the total returns for different S&P 500 sectors for the week and year-to-date. The Communication services sector returned -2.8% for the week and 41.6% year-to-date, while the Consumer discretionary sector returned -0.2% for the week and 35.3% year-to-date. The Consumer staples sector returned -1.9% for the week and 2.0% year-to-date. The Energy sector had a notable 1.2% return for the week but only a 0.6% return year-to-date. The Financials sector returned -0.8% for the week and 3.0% year-to-date. The Healthcare sector returned -2.1% for the week but experienced a -1.8% return year-to-date. The Industrials sector returned -1.8% for the week and 11.1% year-to-date. The Information technology sector had a significant -4.1% return for the week and a notable 40.4% return year-to-date. The Materials sector returned -2.0% for the week and 8.6% year-to-date. The Real estate sector returned -2.4% for the week and 1.9% year-to-date. Finally, the Utilities sector returned -4.6% for the week and -7.9% year-to-date.
As of August 4, 2023, the U.S. fixed-income style total returns show the performance of different credit qualities and interest-rate sensitivity levels over the past week and year-to-date. In the high credit quality category, returns were 0.1% for the week and 2.1% YTD, while in the medium credit quality, the returns were 0.2% for the week and 1.3% YTD. For the low credit quality, returns were -2.6% for the week and -1.4% YTD. In terms of interest-rate sensitivity, the returns for high, medium, and low sensitivity were -0.2%, -0.4%, and 0.0% for the week, and 1.5%, 6.3%, and 6.4% YTD, respectively.
The U.S. Treasury bond yields as of August 4, 2023, show the end-of-week yields, prior year-end yields, and the year-to-date change (in basis points) for the 2-year, 10-year, and 30-year bonds, along with the 2-10 spread and the 10-30 spread.
Looking at U.S. bond sector total returns for the week and year-to-date, various sectors show mixed results. The Aggregate returns were -0.6% for the week and 1.3% YTD, while bank loans had no change for the week and returned 6.7% YTD. Convertible bonds experienced -1.2% returns for the week but a higher 10.3% YTD return. Corporate bonds had a -0.7% return for the week and a 3.0% YTD return, and high-yield bonds returned -0.4% for the week and 6.3% YTD. Mortgage-backed securities (MBS) returned -0.8% for the week and 0.9% YTD, while municipal bonds had -1.3% returns for the week and 1.8% YTD. Preferred bonds returned -0.6% for the week and a substantial 10.4% YTD. TIPS (Treasury Inflation-Protected Securities) had -0.4% returns for the week and 1.5% YTD, while Treasury bonds returned -0.4% for the week and 0.7% YTD.
Global bond total returns for the week and year-to-date show performance across various regions. EM Local (Emerging Markets Local Currency) returned -1.7% for the week but a solid 9.3% YTD return. EMD USD (Emerging Markets Debt in USD) returned -0.9% for the week and 4.7% YTD. Global Agg (Global Aggregate) returned -0.8% for the week and 1.4% YTD, while Global Agg Ex-U.S. (Global Aggregate excluding U.S.) returned -1.0% for the week and 1.4% YTD. The Multiverse category returned -0.8% for the week and 1.6% YTD.
The data also includes performance figures for commodities, indicating a -1.1% return for the BBG Com Ind (Bloomberg Commodity Index) for the week and a -3.2% YTD return. However, oil (WTI) had a strong showing with 2.9% returns for the week and 6.1% YTD, while gold returned -1.1% for the week but still had a positive 6.4% YTD return.
Lastly, the data provides currency performance figures against the USD (U.S. Dollar). EM FX (Emerging Markets Foreign Exchange) had -2.3% returns for the week and a 4.5% YTD return. Other currencies, such as AUD (Australian Dollar), CAD (Canadian Dollar), CHF (Swiss Franc), EUR (Euro), GBP (British Pound), and JPY (Japanese Yen), also showed weekly and YTD returns ranging from -1.3% to -0.1% for the week and -7.0% to 6.1% YTD.
Previous update:
U.S. equity size and style total returns as of July 28, 2023, varied across different time frames. Over the past week, there were returns of 0.3%, 1.0%, and 1.6% for large, medium, and small-sized equities respectively. When looking at year-to-date (YTD) returns, the performance showed variations. In the large category, there were returns of 8.5%, 20.4%, and 33.2% for value, core, and growth respectively. The medium category had returns of 9.3%, 12.8%, and 18.9% for value, core, and growth respectively. Finally, the small category had returns of 9.2%, 13.5%, and 17.4% for value, core, and growth respectively.
Examining index and market returns as of July 28, 2023, the Dow Jones Industrial Average closed at 35,459.3 points, showing a 0.7% increase over the week and an 8.2% return YTD. The NASDAQ Composite Index closed at 14,316.7 points, indicating a 2.0% increase over the week and an impressive 37.4% return YTD. The S&P 500 Index closed at 4,582.2 points, reflecting a 1.0% increase over the week and a solid 20.5% return YTD. The MSCI EAFE Index stood at 2,196.2 points, experiencing a 0.9% increase over the week and maintaining a positive return of 15.6% YTD. Additionally, the Cboe Volatility Index closed at 13.3, showing a 2.2% decrease over the week but a significant decline of 38.7% YTD.
In the international and developed markets, performance varied over the week and YTD. The EAFE index had a 0.9% increase over the week and showed a positive return of 15.6% YTD. European markets, including France, Germany, Spain, and Switzerland, experienced fluctuations ranging from a -0.4% decline to a 1.3% increase over the week, but still showed positive returns YTD. Italy had a 1.8% increase over the week and a strong return of 32.5% YTD. Japan had a significant 2.3% increase over the week and a 16.5% return YTD. Lastly, the U.K. had a modest 0.5% increase over the week and a 12.1% return YTD.
Among emerging markets, there were mixed results. Brazil had a 1.1% increase over the week and showed a solid return of 21.9% YTD. China experienced a 6.8% increase over the week but had a relatively low positive return of 3.7% YTD. India had a slight decline of -0.2% over the week but still showed a positive return of 7.9% YTD. Indonesia had a decline of -0.7% over the week but still showed a respectable return of 10.7% YTD. Korea had a 1.1% increase over the week and showed a strong return of 21.5% YTD. Mexico had a significant 4.0% increase over the week and an impressive return of 34.2% YTD. Unfortunately, data for Russia was not available. Taiwan had a 1.2% increase over the week and displayed a solid return of 22.6% YTD.
Examining the S&P 500 sectors, performance varied across different categories. The S&P 500 Index had a 1.0% increase over the week and still showed a positive return of 20.5% YTD. Communication services had a substantial 6.9% increase over the week and showed strong growth with a 45.7% return YTD. Consumer discretionary had a 1.2% increase over the week and exhibited solid growth with a 35.6% return YTD. Consumer staples had a modest 0.7% increase over the week and a minimal return of 3.9% YTD. Energy had a 1.7% increase over the week and a slight decline of -0.5% YTD. Financials had a slight decline of -0.2% over the week and a modest return of 3.8% YTD. Healthcare had a larger decline of -0.8% over the week and a negative return of 0.3% YTD. Industrials had a 0.6% increase over the week and showed growth with a 13.1% return YTD. Information technology had a 1.3% increase over the week and displayed impressive growth with a 46.4% return YTD. Materials had a 1.8% increase over the week and still showed positive growth with a 10.8% return YTD. Real estate had a decline of -1.3% over the week and a modest return of 4.4% YTD. Utilities had a significant decline of -2.1% over the week and a negative return of -3.4% YTD.
U.S. fixed-income style total returns as of July 28, 2023, showed variations across different time frames. Over the past week, there were minimal returns of 0.0%, -0.3%, and -1.8% for high credit quality, medium credit quality, and low credit quality respectively. When considering year-to-date (YTD) returns, the performance also differed. High credit quality had returns of 2.0%, 1.1%, and 1.2% for limited, moderate, and extensive interest-rate sensitivity respectively. Medium credit quality showed returns of 1.4%, 1.7%, and 5.0% for limited, moderate, and extensive interest-rate sensitivity respectively. Low credit quality had minimal returns of 6.4%, 6.7%, and 5.9% for limited, moderate, and extensive interest-rate sensitivity respectively.
Examining U.S. Treasury bond yields as of July 28, 2023, the 2-year yield was 4.90%, reflecting an increase of 48 basis points (bps) compared to the prior year-end. The 10-year yield stood at 3.97%, showing a slight increase of 9 bps year-to-date (YTD). Similarly, the 30-year yield had a small increase of 6 bps YTD, settling at 4.03%. The 2-10 spread, which measures the difference in yields between the 2-year and 10-year bonds, was -92 bps, indicating a significant decrease of 38 bps YTD. The 10-30 spread, measuring the difference between the 10-year and 30-year yields, was 6 bps, reflecting a slight decrease of -3 bps YTD.
In the U.S. bond sector, total returns varied across different categories. The aggregate bond category had a decline of -0.4% over the week but still showed a positive return of 1.9% YTD. Bank loans had minimal returns of 0.1% over the week and a solid return of 6.6% YTD. Convertible bonds had a decline of -0.2% over the week but showed strong growth with an 8.4% return YTD. Corporate bonds experienced a slight decline of -0.2% over the week but still showed a moderate return of 3.7% YTD. High-yield bonds had minimal returns of 0.1% over the week but exhibited solid growth with a 6.6% return YTD. Mortgage-backed securities (MBS) had a decline of -0.3% over the week but showed a modest gain of 1.7% YTD. Municipal bonds had a decline of -0.3% over the week but exhibited a positive return of 3.1% YTD. Preferred stocks had a decline of -0.3% over the week but displayed impressive growth with a 10.5% return YTD. Treasury Inflation-Protected Securities (TIPS) had a decline of -0.4% over the week but showed a modest gain of 1.9% YTD. Treasury bonds had a decline of -0.6% over the week but still showed a modest return of 1.1% YTD.
In the global bond market, total returns also varied. Emerging markets local currency bonds had a 0.3% increase over the week but still showed solid growth with an 11.1% return YTD. Emerging markets USD-denominated bonds had a slight increase of 0.2% over the week but exhibited a positive return of 5.7% YTD. The global aggregate bond index had a decline of -0.3% over the week but still showed a modest return of 2.2% YTD. The global aggregate bond index excluding the U.S. had a slight increase of -0.2% over the week but displayed a positive return of 2.4% YTD. The multiverse bond index had a slight increase of -0.2% over the week but exhibited a modest return of 2.4% YTD.
Lastly, in the commodities market, the Bloomberg Commodity Index had a 1.1% increase over the week but showed a negative return of -2.2% YTD. The price of oil (WTI) experienced a substantial 4.7% increase over the week and showed a positive return of 3.1% YTD. Gold had a slight decline of -0.2% over the week and displayed a positive return of 7.5% YTD.
In terms of currencies against the U.S. dollar, there were mixed results. Emerging market foreign exchange (FX) had a 0.6% increase over the week and displayed a positive return of 6.8% YTD. The Australian dollar had a decline of -0.9% over the week and showed a negative return of -1.7% YTD. The Canadian dollar had a slight decline of -0.2% over the week but exhibited a modest return of 2.4% YTD. The Swiss franc had a slight decline of -0.2% over the week and displayed solid growth with a 6.6% return YTD. The euro had a larger decline of -0.7% over the week and showed a moderate return of 3.4% YTD. The British pound had a slight increase of 0.1% over the week and exhibited strong growth with a 6.9% return YTD. The Japanese yen had a significant 1.0% increase over the week but showed a negative return of -6.0% YTD.
U.S. Equities:
Position: Investors may consider maintaining or increasing their exposure to U.S. equities, particularly in growth-oriented sectors.
International and Emerging Markets:
Position: Investors might consider increasing exposure to emerging markets that have shown positive momentum. European markets also present potential opportunities for investment.
U.S. Fixed-Income:
Position: Investors may consider favoring high credit quality bonds with limited interest-rate sensitivity, while carefully monitoring the overall trend in the fixed-income market.
Commodities:
Position: Investor may consider maintaining exposure to oil (WTI) given its positive momentum, but carefully monitor the broader commodity market for any potential trends.
Currencies:
Position: Investors might consider avoiding or minimizing exposure to the Japanese yen, considering its negative trend against the
Previous update:
As of July 21, 2023, U.S. equity size and style total returns varied over the past week and year-to-date (YTD). In the large category, there was a 1-week return of 2.1% for value, 0.7% for core, and -0.5% for growth. Year-to-date, large equities showed returns of 8.2% for value, 19.2% for core, and 31.0% for growth. The medium category recorded 1-week returns of 1.4% for value, 1.1% for core, and 0.1% for growth. YTD, medium equities had returns of 9.0% for value, 12.6% for core, and 18.9% for growth. The small category had 1-week returns of 2.3% for value, 1.5% for core, and 0.7% for growth. YTD, small equities exhibited returns of 7.4% for value, 12.2% for core, and 16.8% for growth.
Examining index and market total returns as of July 21, 2023, the Dow Jones Industrial Average closed at 35,227.7 points, showing a 1-week increase of 2.1% and a YTD return of 7.5%. The NASDAQ Composite Index closed at 14,032.8 points, indicating a 1-week decrease of -0.6% but an impressive YTD return of 34.7%. The S&P 500 Index closed at 4,536.3 points, reflecting a 1-week increase of 0.7% and a solid YTD return of 19.2%. The MSCI EAFE Index stood at 2,181.9 points, experiencing a 1-week decrease of -0.6% but still showing a positive YTD return of 14.5%. Additionally, the Cboe Volatility Index closed at 13.6, indicating a 1-week increase of 2.3%, but a considerable YTD decline of -37.3%.
In the international and developed markets, performance also varied over the past week and YTD. The EAFE index showed a 1-week decrease of -0.6% but had a positive YTD return of 14.5%. European markets, including France, Germany, Italy, Spain, and Switzerland, experienced mixed 1-week results ranging from -0.7% to 1.1%. However, they all showed positive YTD returns ranging from 11.5% to 30.2%. Japan had a 1-week decrease of -1.4% but still recorded a positive YTD return of 13.9%.
Among emerging markets, there were mixed 1-week returns, with Brazil showing a significant increase of 2.8% and China experiencing a notable decrease of -2.6%. However, both Brazil and China displayed positive YTD returns of 20.6% and -2.9%, respectively. India had a 1-week increase of 0.5% and a positive YTD return of 8.1%. Korea showed a 1-week decrease of -2.1% but had a strong YTD return of 20.1%. Mexico had a 1-week decrease of -0.7% but recorded an impressive YTD return of 29.1%. Taiwan experienced the most substantial 1-week decrease of -3.3%, but it still showed a positive YTD return of 21.1%.
Examining the S&P 500 sectors, performance varied across different categories over the past week and YTD. The S&P 500 Index had a 1-week increase of 0.7% and a YTD return of 19.2%. Communication services, consumer discretionary, and information technology sectors experienced decreases of -3.0%, -2.3%, and -0.1% over the week, but still displayed strong YTD returns of 36.4%, 33.9%, and 44.6%, respectively. On the other hand, energy and financials sectors had notable 1-week increases of 3.5% and 3.0%, and showed YTD returns of -2.2% and 4.0%, respectively. Healthcare and industrials sectors experienced 1-week increases of 3.5% and 0.9%, and showed YTD returns of 1.1% and 12.5%, respectively. Materials and real estate sectors had 1-week increases of 0.6% and -0.6%, and showed YTD returns of 8.8% and 5.8%, respectively. The consumer staples and utilities sectors had 1-week increases of 1.7% and 2.4%, but still had YTD returns of 3.2% and -1.4%, respectively.
As of July 21, 2023, U.S. fixed-income style total returns showed varied performance over the past week and year-to-date (YTD). In the high credit quality category, there was a 1-week return of 0.04%, -0.10%, and 0.31% for limited, moderate, and extensive interest-rate sensitivity, respectively. YTD, high credit quality bonds recorded returns of 1.92%, 1.43%, and 3.01% for limited, moderate, and extensive interest-rate sensitivity, respectively. The medium credit quality category displayed 1-week returns of -0.05%, -0.07%, and 0.44% for limited, moderate, and extensive interest-rate sensitivity, respectively. YTD, medium credit quality bonds showed returns of 1.40%, 1.92%, and 5.61% for limited, moderate, and extensive interest-rate sensitivity, respectively. The low credit quality category had 1-week returns of 0.06%, 0.01%, and -0.34% for limited, moderate, and extensive interest-rate sensitivity, respectively. YTD, low credit quality bonds exhibited returns of 6.23%, 6.60%, and 5.88% for limited, moderate, and extensive interest-rate sensitivity, respectively.
Examining U.S. Treasury bond yields as of July 21, 2023, the 2-year yield was 4.85%, reflecting an increase of 43 basis points (bps) compared to the prior year-end. The 10-year yield stood at 3.85%, showing a slight decrease of 3 bps YTD. Similarly, the 30-year yield had a small decrease of 6 bps YTD, settling at 3.91%. The 2-10 spread, which measures the difference in yields between the 2-year and 10-year bonds, was -101 bps, indicating a significant decrease of 47 bps YTD. The 10-30 spread, measuring the difference between the 10-year and 30-year yields, was 6 bps, reflecting a small decrease of 3 bps YTD.
In the U.S. bond sector, total returns varied across different categories over the past week and YTD. The aggregate bond category showed a 1-week return of 0.0% and a YTD return of 2.3%. Bank loans had a 1-week return of -0.1% and a solid YTD return of 6.5%. Convertible bonds had a 1-week return of 0.4% and showed strong growth with an 11.0% YTD return. Corporate bonds experienced a 1-week return of 0.2% and still showed a moderate YTD return of 3.9%. High-yield bonds had a 1-week return of 0.0% and displayed solid growth with a 6.6% YTD return. Mortgage-backed securities (MBS) had a 1-week return of -0.1% but showed a modest gain of 2.0% YTD. Municipal bonds had a 1-week return of 0.5% and exhibited a positive YTD return of 3.4%. Preferred stocks had a 1-week return of 0.3% and displayed impressive growth with an 11.4% YTD return. Treasury Inflation-Protected Securities (TIPS) had a 1-week return of 0.4% and showed a modest gain of 2.3% YTD. Treasury bonds had a 1-week return of 0.0% and still showed a modest YTD return of 1.7%.
In the global bond market, total returns also varied over the past week and YTD. Emerging markets local currency bonds showed a 1-week decrease of -0.7% but still displayed solid growth with a 10.8% YTD return. Emerging markets USD-denominated bonds had a 1-week increase of 0.1% and exhibited a positive YTD return of 5.5%. The global aggregate bond index showed a 1-week decrease of -0.5% but still showed a modest YTD return of 2.5%. The global aggregate bond index excluding the U.S. showed a 1-week decrease of -0.9% but displayed a positive YTD return of 2.6%. The multiverse bond index showed a 1-week decrease of -0.5% but exhibited a modest YTD return of 2.7%.
Lastly, in the commodities market, the Bloomberg Commodity Index had a 1-week return of 1.6% but showed a negative YTD return of -3.2%. The price of oil (WTI) experienced a 1-week return of 2.4% but showed a negative YTD return of -1.5%. Gold had a 1-week return of 0.2% and displayed a positive YTD return of 7.7%.
In terms of currencies against the U.S. dollar, there were mixed results. Emerging market foreign exchange (FX) had a 1-week return of 0.2% and displayed a positive YTD return of 6.6%. The Australian dollar had a 1-week decrease of -1.9% but showed a slight positive YTD return of -0.8%. The Canadian dollar had a 1-week decrease of -0.3% but exhibited a modest YTD return of 2.6%. The Swiss franc had a 1-week decrease of -0.7% and displayed solid growth with a 6.8% YTD return. The euro had a 1-week decrease of -1.1% and showed a moderate YTD return of 4.1%. The British pound had a 1-week decrease of -2.1% and exhibited strong growth with a 6.8% YTD return. The Japanese yen had a 1-week decrease of -2.3% but showed a negative YTD return of -6.9%.
Previous update:
U.S. equity size and style total returns as of July 14, 2023, varied across different time frames. Over the past week, there were returns of 1.9%, 2.6%, and 3.2% for large, medium, and small-sized equities respectively. When looking at year-to-date (YTD) returns, the performance showed variations. In the large category, there were returns of 6.0%, 18.4%, and 31.7% for value, core, and growth respectively. The medium category had returns of 7.5%, 11.4%, and 18.7% for value, core, and growth respectively. Finally, the small category had returns of 5.0%, 10.5%, and 15.9% for value, core, and growth respectively.
Examining index and market returns as of July 14, 2023, the Dow Jones Industrial Average closed at 34,509.0 points, showing a 2.3% increase over the week and a 5.3% return YTD. The NASDAQ Composite Index closed at 14,113.7 points, indicating a 3.3% increase over the week and an impressive 35.5% return YTD. The S&P 500 Index closed at 4,505.4 points, reflecting a 2.4% increase over the week and a solid 18.4% return YTD. The MSCI EAFE Index stood at 2,189.0 points, experiencing a 4.9% increase over the week and a positive return of 15.2% YTD. Additionally, the Cboe Volatility Index closed at 13.3, showing a 10.1% decrease over the week but a significant decline of 38.7% YTD.
In the international and developed markets, performance varied over the week and YTD. The EAFE index had an increase of 4.9% over the week and showed a positive return of 15.2% YTD. European markets, including France, Germany, Italy, Spain, and Switzerland, experienced increases ranging from 5.5% to 6.5% over the week and showed positive returns YTD. Japan had a more modest increase of 2.0% over the week and a 15.5% return YTD. Lastly, the U.K. had an increase of 4.7% over the week and a 10.3% return YTD.
Among emerging markets, there were mixed results. Brazil had a slight increase of 0.6% over the week but showed a solid return of 17.3% YTD. China experienced an increase of 6.3% over the week but still had a negative return of -0.3% YTD. India had an increase of 2.1% over the week and a positive return of 7.6% YTD. Indonesia had an increase of 3.1% over the week and showed a respectable return of 12.0% YTD. Korea had an increase of 7.7% over the week and a strong return of 22.7% YTD. Mexico had positive returns of 1.4% over the week and an impressive return of 30.0% YTD. Unfortunately, data for Russia was not available. Taiwan had an increase of 6.2% over the week and displayed a solid return of 25.3% YTD.
Examining the S&P 500 sectors, performance varied across different categories. The S&P 500 Index had an increase of 2.4% over the week and still showed a positive return of 18.4% YTD. Communication services had an increase of 3.4% over the week and showed strong growth with a 40.6% return YTD. Consumer discretionary had an increase of 3.3% over the week and exhibited solid growth with a 37.0% return YTD. Consumer staples had an increase of 1.2% over the week and a minimal return of 1.4% YTD. Energy had an increase of 0.6% over the week but still had a negative return of -5.6% YTD. Financials had an increase of 2.0% over the week and a modest return of 1.1% YTD. Healthcare had an increase of 2.1% over the week but had a negative return of -2.3% YTD. Industrials had an increase of 2.2% over the week and showed growth with an 11.5% return YTD. Information technology had an increase of 2.8% over the week and displayed impressive growth with a 44.7% return YTD. Materials had an increase of 2.5% over the week and still showed positive growth with an 8.2% return YTD. Real estate had an increase of 2.5% over the week and a modest return of 6.5% YTD. Utilities had an increase of 2.3% over the week but had a negative return of -3.7% YTD.
U.S. fixed-income style total returns as of July 14, 2023, showed variations across different time frames. Over the past week, there were returns of 0.2%, 1.1%, and 2.4% for high credit quality, medium credit quality, and low credit quality respectively. When considering year-to-date (YTD) returns, the performance also differed. High credit quality had returns of 1.9%, 1.5%, and 2.7% for limited, moderate, and extensive interest-rate sensitivity respectively. Medium credit quality showed returns of 1.4%, 2.0%, and 5.1% for limited, moderate, and extensive interest-rate sensitivity respectively. Low credit quality had returns of 6.2%, 6.6%, and 6.2% for limited, moderate, and extensive interest-rate sensitivity respectively.
Examining U.S. Treasury bond yields as of July 14, 2023, the 2-year yield was 4.73%, reflecting an increase of 31 basis points (bps) compared to the prior year-end. The 10-year yield stood at 3.82%, showing a slight decrease of 6 bps year-to-date (YTD). Similarly, the 30-year yield had a small decrease of 4 bps YTD, settling at 3.93%. The 2-10 spread, which measures the difference in yields between the 2-year and 10-year bonds, was -91 bps, indicating a significant decrease of 37 bps YTD. The 10-30 spread, measuring the difference between the 10-year and 30-year yields, was 11 bps, reflecting a small increase of 2 bps YTD.
In the U.S. bond sector, total returns varied across different categories. The aggregate bond category had a return of 1.5% over the week and showed a positive return of 2.3% YTD. Bank loans had a return of 0.5% over the week and a solid return of 6.6% YTD. Convertible bonds had a return of 2.1% over the week but showed strong growth with an 11.1% return YTD. Corporate bonds experienced a return of 2.0% over the week but still showed a moderate return of 3.7% YTD. High-yield bonds had a return of 1.7% over the week but exhibited solid growth with a 6.6% return YTD. Mortgage-backed securities (MBS) had a return of 1.7% over the week but showed a modest gain of 2.1% YTD. Municipal bonds had a return of 0.5% over the week but exhibited a positive return of 2.8% YTD. Preferred stocks had a return of 0.5% over the week but displayed impressive growth with an 11.0% return YTD. Treasury Inflation-Protected Securities (TIPS) had a return of 1.2% over the week but showed a modest gain of 1.9% YTD. Treasury bonds had a return of 1.4% over the week and still showed a modest return of 1.7% YTD.
In the global bond market, total returns also varied. Emerging markets local currency bonds had a return of 3.5% over the week but still showed solid growth with an 11.5% return YTD. Emerging markets USD-denominated bonds had a return of 2.5% over the week but exhibited a positive return of 5.4% YTD. The global aggregate bond index had a return of 2.3% over the week but still showed a modest return of 3.1% YTD. The global aggregate bond index excluding the U.S. had a return of 2.7% over the week but displayed a positive return of 3.5% YTD. The multiverse bond index had a return of 2.3% over the week but exhibited a modest return of 3.2% YTD.
Lastly, in the commodities market, the Bloomberg Commodity Index had a return of 2.7% over the week but showed a negative return of -4.8% YTD. The price of oil (WTI) experienced a return of 2.2% over the week but showed a negative return of -3.8% YTD. Gold had a return of 1.7% over the week and displayed a positive return of 7.5% YTD.
In terms of currencies against the U.S. dollar, there were mixed results. Emerging market foreign exchange (FX) had a return of 1.8% over the week but displayed a positive return of 6.0% YTD. The Australian dollar had a return of 2.6% over the week but showed a slight positive return of 1.1% YTD. The Canadian dollar had a return of 1.0% over the week but exhibited a modest return of 2.9% YTD. The Swiss franc had a return of 3.5% over the week and displayed solid growth with a 7.6% return YTD. The euro had a return of 2.7% over the week and showed a moderate return of 5.3% YTD. The British pound had a return of 2.3% over the week and exhibited strong growth with a 9.1% return YTD. The Japanese yen had a return of 2.7% over the week but showed a negative return of -4.7% YTD.
Previous update:
U.S. equity size and style total returns as of July 7, 2023, varied across different time frames. Over the past week, there were negative returns of -1.1%, -1.0%, and -1.1% for large, medium, and small-sized equities respectively. When looking at year-to-date (YTD) returns, the performance showed variations. In the large category, there were returns of 4.0%, 15.4%, and 27.6% for value, core, and growth respectively. The medium category had returns of 4.9%, 8.3%, and 14.3% for value, core, and growth respectively. Finally, the small category had returns of 1.8%, 6.7%, and 11.5% for value, core, and growth respectively.
Examining index and market returns as of July 7, 2023, the Dow Jones Industrial Average closed at 33,734.9 points, showing a 1.9% decline over the week and a 2.9% return YTD. The NASDAQ Composite Index closed at 13,660.7 points, indicating a 0.9% decrease over the week but an impressive 31.1% return YTD. The S&P 500 Index closed at 4,399.0 points, reflecting a 1.1% decline over the week and a solid 15.6% return YTD. The MSCI EAFE Index stood at 2,087.7 points, experiencing a 2.0% decline over the week but still maintaining a positive return of 9.8% YTD. Additionally, the Cboe Volatility Index closed at 14.8, showing an 8.8% increase over the week but a significant decline of 31.8% YTD.
In the international and developed markets, performance varied over the week and YTD. The EAFE index had a decline of 2.0% over the week but showed a positive return of 9.8% YTD. European markets, including France, Germany, Spain, and Switzerland, experienced declines ranging from -2.7% to -2.9% over the week, but still showed positive returns YTD. Italy had a smaller decline of -1.1% over the week and a strong return of 23.7% YTD. Japan remained relatively stable with no change over the week and a 13.3% return YTD. Lastly, the U.K. had a decline of -2.8% over the week and a modest return of 5.4% YTD.
Among emerging markets, there were mixed results. Brazil had a slight decline of -0.4% over the week but showed a solid return of 16.6% YTD. China experienced a decline of -0.9% over the week and a negative return of -6.2% YTD. India remained stable with no change over the week and a positive return of 5.3% YTD. Indonesia had a decline of -1.1% over the week but still showed a respectable return of 8.7% YTD. Korea had a slight decline of -0.6% over the week but showed a strong return of 13.9% YTD. Mexico had positive returns of 0.7% over the week and an impressive return of 28.2% YTD. Unfortunately, data for Russia was not available. Taiwan had a decline of -1.9% over the week but displayed a solid return of 18.1% YTD.
Examining the S&P 500 sectors, performance varied across different categories. The S&P 500 Index had a decline of 1.1% over the week but still showed a positive return of 15.6% YTD. Communication services had a minimal decline of -0.1% over the week but showed strong growth with a 36.1% return YTD. Consumer discretionary had a modest decline of -0.3% over the week but exhibited solid growth with a 32.6% return YTD. Consumer staples had a decline of -1.1% over the week and a minimal return of 0.2% YTD. Energy had a decline of -0.7% over the week and a significant decline of -6.1% YTD. Financials had a slight decline of -0.4% over the week and a modest decline of -0.9% YTD. Healthcare had a larger decline of -2.8% over the week and a negative return of -4.3% YTD. Industrials had a decline of -1.0% over the week but showed growth with a 9.0% return YTD. Information technology had a decline of -1.4% over the week but displayed impressive growth with a 40.7% return YTD. Materials had a larger decline of -2.0% over the week but still showed positive growth with a 5.6% return YTD. Real estate had a small increase of 0.3% over the week and a modest return of 3.8% YTD. Utilities had a minimal decline of -0.1% over the week and a negative return of -5.8% YTD.
U.S. fixed-income style total returns as of July 7, 2023, showed variations across different time frames. Over the past week, there were mixed returns of 0.1%, -0.7%, and -3.3% for high credit quality, medium credit quality, and low credit quality respectively. When considering year-to-date (YTD) returns, the performance also differed. High credit quality had returns of 1.6%, 0.4%, and 0.3% for limited, moderate, and extensive interest-rate sensitivity respectively. Medium credit quality showed smaller gains of 1.0%, 0.7%, and 2.8% for limited, moderate, and extensive interest-rate sensitivity respectively. Low credit quality had returns of 5.2%, 4.8%, and 4.4% for limited, moderate, and extensive interest-rate sensitivity respectively.
Examining U.S. Treasury bond yields as of July 7, 2023, the 2-year yield was 4.94%, reflecting an increase of 52 basis points (bps) compared to the prior year-end. The 10-year yield stood at 4.05%, showing a slight increase of 17 bps year-to-date (YTD). Similarly, the 30-year yield had a small increase of 7 bps YTD, settling at 4.04%. The 2-10 spread, which measures the difference in yields between the 2-year and 10-year bonds, was -89 bps, indicating a significant decrease of 35 bps YTD. The 10-30 spread, measuring the difference between the 10-year and 30-year yields, was -1 bps, reflecting a small decrease of -10 bps YTD.
In the U.S. bond sector, total returns varied across different categories. The aggregate bond category had a decline of -1.3% over the week but still showed a positive return of 0.8% YTD. Bank loans had a small gain of 0.3% over the week and a solid return of 6.0% YTD. Convertible bonds had a decline of -0.6% over the week but showed strong growth with an 8.4% return YTD. Corporate bonds experienced a larger decline of -1.7% over the week but still showed a moderate return of 1.7% YTD. High-yield bonds had a decline of -0.6% over the week but exhibited solid growth with a 4.8% return YTD. Mortgage-backed securities (MBS) had a decline of -1.4% over the week but showed a modest gain of 0.4% YTD. Municipal bonds had a small decline of -0.3% over the week but exhibited a positive return of 2.3% YTD. Preferred stocks had a decline of -1.2% over the week but displayed impressive growth with a 10.5% return YTD. Treasury Inflation-Protected Securities (TIPS) had a decline of -1.2% over the week but showed a modest gain of 0.7% YTD. Treasury bonds had a decline of -1.2% over the week but still showed a modest return of 0.4% YTD.
In the global bond market, total returns also varied. Emerging markets local currency bonds had a decline of -0.5% over the week but still showed solid growth with a 7.7% return YTD. Emerging markets USD-denominated bonds had a decline of -1.2% over the week but exhibited a positive return of 2.8% YTD. The global aggregate bond index had a decline of -0.7% over the week but still showed a modest return of 0.8% YTD. The global aggregate bond index excluding the U.S. had a smaller decline of -0.2% over the week but displayed a positive return of 0.7% YTD. The multiverse bond index had a decline of -0.7% over the week but exhibited a modest return of 0.9% YTD.
Lastly, in the commodities market, the Bloomberg Commodity Index had a modest gain of 0.5% over the week but showed a negative return of -7.3% YTD. The price of oil (WTI) experienced a positive gain of 4.3% over the week but showed a negative return of -5.9% YTD. Gold had a small gain of 0.3% over the week and displayed a positive return of 5.7% YTD.
In terms of currencies against the U.S. dollar, there were mixed results. Emerging market foreign exchange (FX) had a slight decline of -0.2% over the week but displayed a positive return of 4.0% YTD. The Australian dollar had a positive gain of 0.4% over the week but showed a negative return of -1.4% YTD. The Canadian dollar had a small decline of -0.5% over the week but exhibited a modest return of 1.9% YTD. The Swiss franc had a positive gain of 0.5% over the week and displayed solid growth with a 3.9% return YTD. The euro had a positive gain of 0.4% over the week and showed a moderate return of 2.6% YTD. The British pound had a larger gain of 0.9% over the week and exhibited strong growth with a 6.6% return YTD. The Japanese yen had a significant gain of 1.6% over the week but showed a negative return of -7.2% YTD.