Weekly returns

As of June 2, 2023, the total returns for U.S. equity size and style were as follows: over the past week, large-cap stocks had returns of 2.2%, medium-cap stocks had returns of 3.6%, and small-cap stocks had returns of 1.2%. In terms of value, core, and growth styles, the year-to-date returns were 1.2%, 12.1%, and 23.8% for large-cap stocks, 0.1%, 3.9%, and 10.8% for medium-cap stocks, and -0.2%, 4.6%, and 9.3% for small-cap stocks.

Looking at the index and market total returns, the Dow Jones Industrial Average closed at 33,762.8, with a 1-week return of 2.2% and a year-to-date return of 2.9%. The NASDAQ Composite Index stood at 13,240.8, showing a 1-week return of 2.1% and a year-to-date return of 27.0%. The S&P 500 Index recorded a close of 4,282.4, with a 1-week return of 1.9% and a year-to-date return of 12.4%. The MSCI EAFE Index reached 2,097.7, with a 1-week return of 0.9% and a year-to-date return of 10.2%. The Cboe Volatility Index, a measure of market volatility, was at 14.6, showing a decline of 18.9% over the past week and a decrease of 32.7% year-to-date.

In terms of international markets, the EAFE index had a 1-week return of 0.9% and a year-to-date return of 10.2%. European markets performed with varying results, ranging from a 1-week return of 0.3% for Europe to 2.6% for Japan. France had a 1-week return of 0.1%, Germany had a return of 0.6%, Italy recorded a return of 1.4%, Spain had a return of 1.4%, Switzerland had no change, and the U.K. had a return of 0.9%.

Looking at emerging markets, the 1-week returns varied, with Brazil having the highest at 2.2% and Indonesia experiencing a decline of -1.4%. Year-to-date returns for emerging markets ranged from -5.0% for China to 23.5% for Mexico.

Within the S&P 500 sectors, there were varied performances. Over the past week, the communication services sector had a return of 1.1%, consumer discretionary sector had a return of 3.4%, consumer staples had a return of 0.4%, energy had a return of 1.4%, financials had a return of 2.2%, healthcare had a return of 2.2%, industrials had a return of 2.7%, information technology had a return of 1.4%, materials had a return of 3.1%, real estate had a return of 3.1%, and utilities had a return of 0.8%. Year-to-date returns ranged from -7.7% for energy to 36.4% for information technology.

As of June 2, 2023, the total returns for U.S. fixed-income styles were as follows: over the past week, high credit quality bonds had returns of 0.1%, medium credit quality bonds had returns of 0.3%, and low credit quality bonds had returns of 0.6%. In terms of interest-rate sensitivity, bonds with high sensitivity had year-to-date returns of 1.5%, medium sensitivity bonds had returns of 1.4%, and low sensitivity bonds had returns of 4.5%.

Looking at U.S. Treasury bond yields, the 2-year bond yield was 4.51%, the 10-year bond yield was 3.69%, and the 30-year bond yield was 3.88%. There was a decrease of 4 basis points (bps) in the 2-year yield compared to the prior year end, a decrease of 19 bps in the 10-year yield, and a decrease of 9 bps in the 30-year yield. The spread between the 2-year and 10-year yields was -82 bps, indicating a narrower spread, while the spread between the 10-year and 30-year yields was 19 bps.

In the U.S. bond sector, the aggregate bond market had a 1-week return of 1.0% and a year-to-date return of 2.2%. Other sectors had varied returns, including bank loans with a 1-week return of 0.3% and a year-to-date return of 3.6%, convertible bonds with a 1-week return of 0.5% and a year-to-date return of 4.3%, corporate bonds with a 1-week return of 1.2% and a year-to-date return of 3.3%, high yield bonds with a 1-week return of 1.2% and a year-to-date return of 4.6%, mortgage-backed securities (MBS) with a 1-week return of 1.3% and a year-to-date return of 1.9%, municipal bonds with a 1-week return of 0.9% and a year-to-date return of 2.0%, preferred securities with a 1-week return of 3.4% and a year-to-date return of 12.3%, Treasury Inflation-Protected Securities (TIPS) with a 1-week return of 0.3% and a year-to-date return of 1.9%, and Treasury bonds with a 1-week return of 0.7% and a year-to-date return of 2.0%.

In the global bond market, the 1-week returns varied, with EM Local bonds having a return of 0.5% and EMD USD bonds having a return of 1.3%. Year-to-date returns for global bonds ranged from 1.3% for Global Agg Ex-U.S. bonds to 5.8% for EM Local bonds.

Looking at commodities, the 1-week returns varied, with the BBG Com Ind index declining by -0.2% and Oil (WTI) experiencing a decline of -1.2%. Gold, on the other hand, had a 1-week return of 0.4% and a year-to-date return of 7.1%.

In the currency market, the U.S. dollar (USD) had varied performance against different currencies over the past week. Emerging market (EM) currencies declined by -0.2%, while the Australian dollar (AUD) and Canadian dollar (CAD) had positive returns of 1.6% and 1.5% respectively. The Swiss franc (CHF) had no change, the euro (EUR) had a return of 0.2%, the British pound (GBP) had a return of 1.2%, and the Japanese yen (JPY) had a return of 0.6%. Year-to-date returns for these currencies also varied, ranging from -5.5% for JPY to 3.8% for GBP.

U.S. Equity Market:

• Over the past week, medium-cap stocks had the highest returns at 3.6%, followed by large-cap stocks at 2.2%, and small-cap stocks at 1.2%. This suggests a positive performance across the board, with medium-cap stocks leading the way.
• In terms of style, growth stocks have outperformed both value and core stocks year-to-date. Large-cap growth stocks had the highest returns at 23.8%, followed by medium-cap growth stocks at 10.8% and small-cap growth stocks at 9.3%. Investors can consider allocating a portion of the equity portfolio to growth stocks to capture their strong performance.

U.S. Market Index:

• Major U.S. market indices have shown positive returns year-to-date, with the NASDAQ Composite Index leading the pack at 27.0%. This indicates the strength of technology and growth-oriented stocks. Investors can consider maintaining exposure to the NASDAQ Composite Index or technology-focused funds.
• The Cboe Volatility Index (VIX) has declined significantly both over the past week (-18.9%) and year-to-date (-32.7%). This suggests reduced market volatility, which generally favors equity investments.

International Markets:

• The MSCI EAFE Index, representing developed international markets, has shown positive returns both over the past week (0.9%) and year-to-date (10.2%). Investors can consider maintaining exposure to international markets to diversify the equity portfolio.
• European markets have shown mixed results, but Japan has performed well with a 1-week return of 2.6%. Investors can consider exposure to Japan or broader international funds.

Emerging Markets:

• Emerging markets have shown mixed returns, with Brazil having the highest 1-week return (2.2%) and China experiencing a negative year-to-date return (-5.0%). Mexico has been the top performer year-to-date with a return of 23.5%. Investors can consider a selective approach to emerging markets, focusing on countries with stronger performance and potential.

S&P 500 Sectors:

• Various sectors within the S&P 500 have performed well over the past week, such as consumer discretionary, industrials, and materials. Information technology has been the top-performing sector year-to-date with a return of 36.4%. Investors diversifying across different sectors to capture the broader market growth.

U.S. Fixed-Income Market:

• U.S. fixed-income sectors have shown modest returns over the past week and year-to-date. The aggregate bond market has provided a 1-week return of 1.0% and a year-to-date return of 2.2%. Investors can consider maintaining a diversified bond portfolio to balance risk and income generation.

Global Bond Market:

• Global bond market returns have varied, with EM Local bonds and EMD USD bonds showing positive returns over the past week. Global Agg Ex-U.S. bonds have provided a solid year-to-date return of 1.3%. Investors can consider maintaining exposure to global bonds for diversification and potential returns.

Commodities and Currencies:

• Commodity returns have been mixed, with slight declines in the BBG Com Ind index and Oil (WTI), while gold has shown positive returns both over the past week and year-to-date. Investors can consider including gold or commodity-focused investments for diversification.
• Currency performance has varied, with the U.S. dollar experiencing a decline against EM currencies but showing positive returns against AUD, CAD, and GBP. Investors can consider assessing the impact of currency movements on your investment portfolio, especially if you have international exposure.