US Equity Markets continued to rally last week, as investors increasingly focus on the prospect of re-opening the economy post the coronavirus. President Trump laid out plans for such a re-opening, and encouraging early data about a possible treatment for COVID-19 drove the markets higher. The S&P 500 rose 3.0% for the week and is now only down 11.0% for the year. The Nasdaq continues to outperform, up 6.0% for the week to bring its losses to 3.6% for the year, while the Russell 2000 (small-cap stocks) continues to struggle, down 1.4% for the week, as the US economy weakens. For the year, the Russell 2000 is down 26.3%.
Global equity markets increased last week, as countries begin to discuss lifting lockdown measures, with Germany announcing plans to begin re-opening its economy this week. Developed Markets rose 1.0% for the week to reduce its losses for the year down to 20.5%. Emerging Markets were up 1.6% for the week despite ongoing declines in oil prices. For the year, Emerging Markets are down 19.1%.
Another 5.2 million people filed unemployment claims for the prior week, bringing the 4-week total of those filing for unemployment claims to over 22.0 million. However, there are numerous reports that state unemployment systems are overwhelmed and unable to process all claims. At 22.0 million claims, it suggests that the Unemployment Rate in the US is currently in excess of 13.0%.
Of Interest to Us
After plunging about 60% over the past month, daily surveys of consumer confidence actually increased last week thanks to an improvement in consumer economic positions over the prior 5 days. This is likely the result of stimulus checks starting to be received and the impact from increased unemployment benefits that were included in the recent $2.2 trillion CARES Act.
Market Data
for the week ending 4/17/2020
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