Economic Market Summary

Market Down and Dirty

Last Week’s Economic/Market Summary


  • U.S. equity indices ripped higher last week. 
    • S&P 500 +6.62% Dow +5.39%, Russell 2000 +6.00%, Nasdaq +7.49%1 
      • The All-Country World Index rose 4.52%.1 
    • S&P 500 sub-sectors ended the week almost all higher. 
      • Consumer Discretionary, Tech, & Healthcare led to the upside. 
      • Energy was the lone negative sector at -2.59%.1 
    • The CBOE Volatility Index (VIX) declined 12.28% to end at 27.22. 1 
  • US Treasury bond yields were lower last week across the curve.
    • US 2yr -0.12% at 3.05%, 10yr -0.11% to 3.13%, 30yr -0.03% to 3.26%.1 
    • While bond yields have stabilized, they remain largely driven by inflation & Fed policy. 
  • Commodities as an aggregate asset class were slightly higher last week despite equity weakness.
    • WTI Crude declined 2.32%.1 
    • Gold lost -0.65%.1 
    • The US Dollar index sank 0.56%.1 
  • In our opinion, U.S. economic data was mixed last week. 
    • Global PMI’s reflected slowing conditions but still expansionary business conditions. 1 
    • New Orders in the US dropped last month for the 1st time in 2 years. 1 
    • Housing showed mixed data as rates remain elevated with affordability being squeezed. 1 
  • An index of equities outside the US (FTSE All-World ex-US) underperformed at +1.85%.1 


  • Equity markets surged back last week as commodities & interest rates both moved lower. 
    • The tech-heavy Nasdaq led domestic markets to the upside last week with a gain of 7.49%.1 
      • This is not surprising as this same index has led to the downside so far in ’22. 
    • The S&P 500 gained 6.62% last week yet remains down over 17% YTD. 1 
      • We believe the sharp drop in commodity prices helped fuel the bounce last week as hopes of an economic “soft landing” were reignited. 
  • S&P 500 subsectors were mostly higher last week. 
    • Consumer Discretionary, Healthcare, & Tech led to the upside. 
      • Discretionary & Tech were the biggest decliners coming into last week and are still down 28% & 23% respectively. 1 
    • Energy was the lone decliner last week as crude oil declined. 
      • Crude is now down over 10% in the last 2 weeks. 
  • The VIX volatility index declined over 12% last week to end just over 27. 1 
    • This measure of volatility’s movement relative to the S&P 500’s decline has differed tremendously from past stock market drawdowns. 
    • As the S&P 500 has been staging a long, orderly descent from the record level hit at the start of the year as the Federal Reserve pulls back its flood of pandemic-era stimulus, the VIX has yet to truly spike. 
      • We believe the difference is the fact there have been no major shocks like past equity market bear markets. 
    • While volatility could remain muted and even compress further into the end of the quarter, we continue to watch it closely. 
  • US government interest rates moved lower across the maturity curve last week. 
    • The shorter maturities that mostly track Fed policy led the declines. 
    • The longer end came down less as market participants continue to measure inflation’s path forward & it’s effect on economic activity. 
    • Federal Reserve Chair Jerome Powell indicated to congress last week that the Fed’s primary focus is inflation right now while acknowledging a recession is possible. 1 
  • Commodities sold off very hard last week for the 2nd straight week. 
    • Industrial metals led the decline and are on track for their worst quarter since the 2008 financial crisis. 1 
      • Copper, the great economic bellwether, has plummeted into a bear market from a high 4 months ago. 
    • While inflation is here and supplies are tight, we believe prices are spiraling lower on worries about a major slowdown in industrial activity across major economies. 
    • Will prices reverse higher or will there be enough 

Ryan A. Mumy, CFP®,
AIF® – Chief Investment Officer

Contact: 828/855-9400 or 

 1 Source: Bloomberg – 6/24/2022  

Disclosures: The information provided in this paper is for general informational purposes only and should not be considered an individualized recommendation of any particular security, strategy or investment product, and should not be construed as investment, legal or tax advice. Capital Investment Advisory Services, LLC makes no warranties with regard to the information or results obtained by third parties and its use and disclaim any liability arising out of or reliance on the information. This information is subject to change and, although based on information that Capital Investment Advisory Services, LLC considers reliable, it is not guaranteed as to accuracy or completeness. Source information is obtained from independent financial data suppliers. For investment related terms definitions, please visit: Past performance is no guarantee of future results. Additional information about CIAS and its Form ADV Part 2A are available on the SEC’s website at Advisory services through Capital Investment Advisory Services, LLC Securities may be offered through Capital Investment Group, Inc. Member FINRA/SIPC Both firms located at 100 E. Six Forks Rd. Suite 200, Raleigh, NC 27609 919-831-2370