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Global Markets Continue to Perform Well as the S&P 500 Extends Record-Setting Streak
Markets globally continue to perform well, particularly in the U.S., where both the S&P 500 and NASDAQ reached new record highs for the fourth time in the past five weeks. The rally has been marked by low volatility and steady gains, with 11 new highs recorded over the past 30 days. Global equities, as measured by the MSCI All Country World Index (ACWI), advanced 1.44%, while U.S. equities, represented by the S&P 500, rose 1.47%.
Market Volatility
As noted above, market volatility has declined over the past five weeks, with the CBOE Volatility Index (VIX) closing at 14.9 on Friday, down from a recent high of 21.6 on June 17. The VIX, which measures investors’ expectations for short-term U.S. stock market volatility, fell by 9% over the past week alone. This decline reflects growing investor confidence as we enter the busiest stretch of earnings season.
U.S. Housing Market
Housing data released last week continued to reflect the pressures of elevated mortgage rates and high home prices. In June, existing home sales declined 2.7% to an annualized rate of 3.93 million units, while new home sales edged up just 0.6% to 627,000, both results falling short of analysts’ expectations. The report highlights ongoing headwinds that continue to weigh on overall housing market activity.
Looking Ahead
It’s a packed week ahead for investors, with a full slate of economic data and corporate earnings. In addition to ongoing earnings reports, key highlights include the U.S. Federal Reserve’s policy meeting, which concludes on Wednesday, the initial estimate of second-quarter GDP, and the July jobs report on Friday. The Fed is widely expected to keep interest rates unchanged, while GDP is projected to rebound from the first quarter’s weaker reading. The employment data will offer insight into whether July’s job growth kept pace with June’s stronger-than-expected report.
As Always
I’d like to leave you with the final line we’ve used since we started these commentaries back at the very height of market volatility in March 2020. Always remember that we create financial/investment plans not for the easy times, but to prepare for the tough ones.
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