Economic Market Summary: U.S. Equities Continue Upward Trend Amidst A Tame Market Week

Market Down and Dirty

Last Week’s Economic/Market Summary


  • U.S. equities finished the week higher in a fairly tame week for the markets.
    • S&P 500 +0.46% Dow +0.34% Russell 2000 +1.65%, Nasdaq +0.14%1
      • The All-Country World Index gained 0.56%.1
    • S&P 500 sub-sectors were mostly higher last week.
      • Consumer Discretionary, Utilities, & Energy led to the upside. 1
      • Tech & Staples were the only negative sectors. 1
    • The CBOE Volatility Index (VIX) dropped 5.4% to end the week @ 13.81. 1
  • US Treasury bond yields were higher last week across the yield curve.
    • US 2yr +0.09% at 4.59%, 10yr +0.06% to 3.75%, 30yr +0.01% to 3.89%.1
    • The Fed meets this week and the market is currently pricing in a pause to hikes.
  • Commodities as an aggregate asset class were flat to lower last week.
    • WTI Crude declined -1.98%.1
    • Gold rose +0.65%.1
    • The US Dollar index declined -0.45%.1
  • In our opinion, U.S. economic data continued to be mixed last week.
    • US Services PMI came in well below estimates last week. 1
    • Weekly unemployment claims jumped & consumer credit expanded more than expected. 1
    • All eyes will be on the Fed & CPI data this week.
  • An index of equities outside the US (FTSE All-World ex-US) rose +0.55% last week. 1


  • US Equities continued their recent trend higher albeit at a slower pace.
    • The small-cap tracking Russell 2000 led major indices higher with a gain of almost 2%.1
      • Small-caps have lagged year-to-date and the most beaten down areas of the market at large saw outperformance last week.
    • Price action was very muted last week as all eyes are on the Federal Reserve’s meeting this week and various economic data releases such as CPI on Tuesday.
  • S&P 500 subsectors were mostly higher last week.
    • Consumer Discretionary led sectors higher thanks to a big gain by Tesla on the week. 1
      • Other sectors leading to the upside were some of the worst performers year to date.
    • Tech was one of the only negative sectors as investors seemed to take a breather from the AI fueled hype train.
      • The AI frenzy that has driven massive inflows into tech stocks is marking a pause, Bank of America Corp. says. Tech funds sustained $1.2 billion of outflows in the week through June 7, their first in eight weeks, according to the bank, citing EPFR Global data. The move occurred after the group had record inflows last week.
  • US Treasury yields were higher across the yield curve last week.
    • Higher yields were mostly seen on the front end of the yield curve after surprise rate hikes by 2 global central banks last week. 1
      • The 30yr US Treasury yield was only slightly higher.
  • Non-US equity markets gained slightly less than 1% last week as the US Dollar took a pause from its recent move higher. 1
    • Many market participants are still anticipating monetary stimulus from China while current data doesn’t show this is currently happening.
    • Latin American equities continued their recent outperformance to the upside.
      • Brazilian equities priced in US Dollars broke out to a new 52 week high last week. 1
  • Commodities continued their year-to-date struggles, moving lower last week.
    • Despite Saudi Arabia’s surprise cut to production last week, crude still declined almost 2%.1
      • Fears of reduced demand still continue to dominate any supply cuts by OPEC+ thus far.
    • Commodities & the bond markets continue to tell a vastly different story about the future of the global economy than do equity markets.
  • The Federal Reserve Open Market Committee will hold its next meeting this week and all eyes are on their rate decision as well as their summary of economic projections.
    • Expectations for the Fed to hike interest rates this week were at almost 100% at the end of May and are now only 33%.1
      • This is an unusual lack of consensus so soon before the Fed meeting.
    • Inflation data on Tuesday could prove decisive to the Fed’s path this week.
    • If the Fed does pause rate hikes this would mark their first non-hike in 10 consecutive meetings going back to March of 2022.

Ryan A. Mumy, CFP®,

AIF® – Chief Investment Officer

Contact: 828/855-9400 or 

 1 Source: Bloomberg – 6/9/2023 

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