WEEKLY CAPITAL MARKET HIGHLIGHTS:
- Equities experienced selling pressure, posting their first weekly loss of 2018, and the largest since 2016. The selling was not limited to any cap or style, as both large and small cap, as well as value and growth each shed over 3-4% on the week. International equities faced similar selling pressure, with emerging markets equities fairing the worst.
- Treasury yields continued their surge higher, with the yield on the 10-Year Note reaching 2.85% and quickly approaching 3%, which are levels not seen since early 2014.
- Commodity indices fell, as gold and energy prices were lower.
- Last Federal Open Market Committee (FOMC) for Yellen. Janet Yellen held her last meeting as Fed Chair, with the FOMC keeping the federal funds rate unchanged at 1.25%-1.50%. Jerome Powell takes over the Fed Chair position.
- Among major economic data, initial jobless claims fell to 230,000, which was lower than expected. Personal Income and Spending data showed the savings rate in December hit its lowest level since 2005. ISM Manufacturing data, at 59.1, was better than expected.
Click here to download the complete weekly report: Endowment Wealth Management™ Weekly Review February 2, 2018