Economic Market Summary

Market Down and Dirty

Last Week’s Economic/Market Summary


  • U.S. equity indices ended the week lower for the 3rd straight week.
    • S&P 500 -3.22% Dow -2.85%, Russell 2000 -4.70%, Nasdaq -4.21%1
      • The All-Country World Index sank -3.45%.1 
    • S&P 500 sub-sectors were all lower last week.
      • Utilities & Healthcare were the only sectors down less than 2%.1 
      • Technology & Materials led to the downside with losses around 5%.1 
    • The CBOE Volatility Index (VIX) was flat to slightly down, finishing at 25.43. 1 
  • US Treasury bond yields were mixed as the short-end was flat & long maturities rose.
    • US 2yr flat at 3.38%, 10yr +0.15% to 3.19%, 30yr +0.13% to 3.34%.1 
    • The Treasury market is down over 10% in ’22; on pace for its worst year since 1971. 1 
  • Commodities as an aggregate asset class were down last week.
    • WTI Crude declined 6.47%.1 
    • Gold declined 1.52%1 
    • The US Dollar index rose 0.72%.1 
  • In our opinion, U.S. economic data was mixed last week.
    • All eyes were on jobs reports as US employers added more than expected. 1 
    • The participation rate increased along with wages & job openings. 1 
    • Consumer confidence unexpectedly rose in August thanks to falling gas prices. 1 
  • An index of equities outside the US (FTSE All-World ex-US) dropped -3.43%.1 


  • US Equities finished lower for the 3rd consecutive week as the global economy remains jittery and the US job market showed little signs of weakening.
    • As unemployment remained low, participation improved, wage inflation moved higher & job openings increased, market participant’s hope for the Federal Reserve pivoting off their pace of rate hikes were dashed.
      • This data seemed to keep upward pressure on interest rates and sent equities lower. 
    • Growth oriented equities led to the downside as higher longer-term interest rates over proportionately effect their forward multiples/share prices. 
  • All S&P 500 sectors ended the week lower as losses were extremely broad-based.
    • The technology sector led to the downside with a loss over 5%.1
      • Semi-conductors were under pressure as the US will begin to limit their exports. 1 
    • Materials were the 2nd worst performer at -4.89%.1
      • We believe this is primarily driven by concerns that the global economy is slowing more than expected & that China won’t provide the counter-cyclical stimulus (demand) as in past times of US economic softening. 
  • Longer dated US Treasury yields moved higher while the 2yr ended flat. 1
    • This steepening of the yield curve could indicate market participants are beginning to think higher inflation will stick around longer than has been expected. 
    • The 2yr US Treasury hit its highest level since 2007 on Thursday at 3.55% before moving lower after the jobs report on Friday. 1
      • We remind readers that the 2yr rate is primarily influenced by the Federal Reserve’s interest rate policy. 
  • If a new, higher range for longer term US Treasury rates is upon us, the “buy tech on the dip” approach to “investing” could be at risk.
    • With Tech being 27% of the S&P 5001, if investors at large ever start puking mega-cap tech names, downward pressure on equities at large could be substantial. 
    • While this is hard to envision for many, we encourage folks to look back over the history of the S&P 500’s biggest weighting and the fact the largest capitalization companies/sectors don’t remain at the top forever.
      • We’re not saying Tech’s run is over…however…if longer-term interest rates enter a new higher range, this could be a catalyst to an adjustment to the sector’s dominance. 
  • International equities also moved firmly lower last week as the US Dollar made new weekly highs. 1
    • China is facing additional headwinds as its currency tumbled to a 2 year low. 1
      • Their weakening currency puts immense pressure on emerging market economies that are already battling a stronger US Dollar and elevated inflation. 
  • Energy markets were lower last week, but they might not stay that way.
    • OPEC+ meets this week and has already suggested a dislocation between demand & the price of oil as a result of speculation by traders. 1 
    • Natural gas is poised to move higher this week after Russia delayed flows to Germany. 1 

Ryan A. Mumy, CFP®,

AIF® – Chief Investment Officer

Contact: 828/855-9400 or 

 1 Source: Bloomberg – 9/2/2022  

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