EWM Weekly Capital Market Highlights for Week Ended 02/09/2018

WEEKLY CAPITAL MARKET HIGHLIGHTS:

  • Stock markets plunged. The S&P 500 Index nosedived more than 7% during the week, wiping out all of 2018’s gains plus a big chunk of those of fourth quarter 2017.  Among equities, small caps outperformed large caps; growth stocks led value stocks; international stocks outperformed domestic stocks; and emerging markets trailed developed markets.
  • Stock market volatility skyrocketed. After more than doubling on Monday (2/5) from the previous close, the CBOE Volatility Index, VIX, stayed elevated and closed the week above 30.
  • Treasury yields stayed firm despite the equity mark selloff. The yield on the 10-Year Treasury Note stayed above 2.8%, closing in on the 2.9% level.
  • Commodity indices fell. Crude oil prices plunged, with the WTI price dipping below $60 a barrel.
  • The dollar rebounded. The dollar index climbed back above 90, as the dollar rose against most major currencies except for the Japanese Yen.
  • Among major economic data: the January 2018 ISM Non-Manufacturing Index soared to 59.9, the highest since August 2005; the December 2017 trade deficit widened to $53.1 billion, largely due to a jump in imports.

Click here to download the complete weekly report: Endowment Wealth Management™ Weekly Review February 9, 2018