Financial Markets & EconomyWeekly Capital Market Updates

EWM Weekly Capital Market Highlights for Week Ended 12/21/2018

By December 21, 2018 No Comments
  • Domestic equities traded mostly lower over the week, with the S&P 500 Index on track for its worst year since 2008. Value stocks outpaced growth stocks, but both were sold pretty heavily. International and emerging markets equities outpaced domestic stocks.
  • December selloff continues. With Christmas around the corner and no Santa Claus rally in sight, stocks continued to face selling pressure this week. The Dow Jones Industrial Average is on track for its worst December since 1931, and more than the half of the S&P 500 Index stocks have entered bear market territory, defined as a decline of greater than 20% from their high. Some of the largest stocks in bear territory include Amazon (AMZN), Apple (AAPL), Bank of America (BAC), Walmart (WMT), Exxon Mobil (XOM), and AT&T (ATT), among others.
  • The yield on the 10-Year Treasury Note traded lower on the week, reaching 2.75% on Thursday, its lowest level in nine months, and the yield on the 30-Year Treasury Bond traded below 3%.
  • Gold was higher, as investors flocked to the safe haven asset. Oil traded lower. Commodities as a whole were lower, but outpaced domestic equities.
  • Bitcoin marked the one-year anniversary of its all-time high near $20,000, and is down more than 80% since this week last year.
  • The Federal Reserve raised its benchmark rate. On Wednesday, the Federal Open Market Committee (FOMC) voted to increase the federal funds rate 25 basis points to 2.25%-2.50%, its fourth increase in 2018 and ninth since 2015. The Fed also cut its projection for 2019 rate hikes to two from three, but with a less dovish tone in its messaging.

Click here to download the complete weekly report: EWMWeeklyReview 12.21.18