- US equities began the week on a disappointing note on concerns of an economic slowdown, with all broad-level indices in negative territory. However, markets rebounded later in the week in anticipation of employment figures being released. Additionally, large caps outperformed small caps; growth outperformed value; domestic stocks outperformed international stocks; and emerging markets outperformed developed markets.
- Flight to quality was evident in the fixed income markets earlier last week, as the yield on the 2-year U.S. Treasury Note, which is highly sensitive to the outlook for Fed policy, fell to 1.38%, its lowest level since 2017. The 10-year Treasury yield declined to 1.53%, while the 30-year Treasury yield tumbled to 2.05% in the aftermath of weak manufacturing data.
- Oil prices declined throughout the week on news of an unexpected rise in US crude supplies and concerns about overall global demand. The weak economic data led to a rally in gold but hit a roadblock later in the week after optimistic employment figures were released.
- US Dollar Index traded lower during the week, after scaling a 30-day high on October 1. Since then, it drifted down, as investors lowered their expectations for the Fed to cut rates after Friday’s job report.
Click here to download the complete weekly report: EWMWeeklyReview 10.7.19
Disclosure: Past performance is not necessarily indicative of future results.