Equity markets rose again last week, as investors continued to focus on the positives. The possibility of more progress on the trade front, improved manufacturing readings, decent third-quarter earnings results and accelerating corporate deal activity all helped stocks to rise for a fifth straight week.
U.S. Treasury yields rose sharply last week, led by longer maturities.1 Investors reacted to speculation that U.S./China tariffs may be rolled back, and Treasury yields made their biggest jump for the week on Thursday.
Equities finished higher for the fourth straight week, with the S&P 500 Index up 1.5% and most U.S. averages setting record highs. The biggest tailwinds included the de-escalation of U.S./China trade tensions, Fed accommodation, and earnings results that have not been as bad as expected. Health care, technology and industrials were the best-performing sectors for the week, while REITs, energy and consumer staples were the weakest.
U.S. Treasury yields declined last week, led by longer maturities.1 The Federal Reserve (Fed) cut interest rates by 25 basis points (bps), and the 30-year Treasury yield dropped by more than 15 bps in the following days.
U.S. Treasury yields rose slightly last week, with 2-year Treasury yields showing the most volatility. Investors focused on relatively positive news that Brexit would be postponed.
Stock markets rose yet again last week, boosted by decent corporate earnings results and optimism over the near-term phase one U.S./China trade deal. The S&P 500 Index climbed 1.2%.
The U.S. Treasury yield curve steepened, as short maturity yields declined while yields of longer maturities rose. The modest yield change masked overall volatility.
The third quarter earnings season got off to a decent start, with results better than expected. That backdrop, combined with an apparent de-escalation of U.S./China trade tensions and positive Brexit momentum (before the weekend’s confusion), helped push stock prices modestly higher.
Prospects of a U.S./China trade “truce” stoked a strong risk-on sentiment, significantly boosting U.S. Treasury yields. The increase offset a majority of the previous week’s declines.
After declining for three weeks, equity prices advanced last week, helped largely by Friday’s sharp rally following the announcement of a “Phase One” U.S/China trade deal. Sentiment was also helped by some improving economic data.
U.S. Treasury yields fell dramatically last week, led by shorter maturities. Weaker-than-expected manufacturing data fueled risk-off sentiment.
Equities finished lower for the third straight week, despite a rally on Friday, with the S&P 500 falling 0.30% for the week. Technology, health care and consumer staples were the strongest-performing sectors, while energy, financials and industrials were the weakest.