FEATURED MARKET DATA
Initial Unemployment Claims Soar
A record 6.6 million workers applied for unemployment benefits in the week of March 22-28, a level nearly 10 times greater than the peak level of claims reported in 2009 during the Great Recession.
FEATURED MARKET DATA
Financial Market Fallout
Coronavirus fears and anticipated impact on the global economy have driven large market moves. As of March 6th, the S&P 500 has declined nearly 13% from its closing price on February 19th.
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Coronavirus Expected to Slow Global Growth
An announcement in the last week of January that major U.S. airlines will suspend flights to China for an extended period is unprecedented during peacetime.
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Strong Returns Across Asset Classes in 2019
Following a difficult end to 2018, investors enjoyed very strong investment returns across all asset classes in 2019. Actions by the Federal Reserve were the primary catalysts for pushing both stock and bond prices substantially higher.
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Markets Seeing the Bright Side
As discussed below, November saw mixed economic data. Markets, though, seemed focused on the positive news with safer Treasuries selling off in favor of increased buying in equity markets.
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What is Moving the Dollar?
Over the past year, President Trump has repeatedly blamed the Federal Reserve for setting rates too high and strengthening the US dollar.
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Consumers Feeling Headwinds
Consumer spending has trended down since March and Consumer Confidence declined in September for the second consecutive month.
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Bond Market Volatility
The U.S. Treasury market experienced a surge in volatility in August as displayed by the Merrill Lynch MOVE Index. Despite this volatility, corporate spreads widened only modestly.
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Inflation Expectations in Focus
Inflation expectations increased following the June Fed meeting as the Fed signalized a more dovish stance. However, 5-year and 10-year inflation breakeven rates began declining in advance of the Fed’s July meeting as global growth concerns rose.
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Stocks and Treasuries Diverge
Stock and bond markets are expressing divergent views of the future. Typically, stock prices and bond yields rise together. Bond yields began to decline in the 4th quarter of 2018 and stocks declined as expected. However, stocks recovered in late December while bond yields have continued to fall.
