Weekly Market Bullets
for the week ending 5/15/2020
  • US Equity Markets fell last week following cautious comments from Federal Reserve Chairman Powell and rising tensions between the US and China. Fed Chairman Powell stated that the US economic outlook was "highly uncertain" and subject to "significant downside risks." As a result, the S&P 500 fell 2.3% for the week and is now down 11.4% for the year. The Nasdaq continued to outperform, only down 1.2% for the week, and remains up 0.5% for the year, while the Russell 2000 (small-cap stocks) dropped a sharp 5.5% for the week to bring its losses for the year to 24.7%.

  • Global equity markets also struggled last week, as President Trump increased rhetoric about retaliation against China for COVID-19 and European economic data were weak. The net result was that Developed Markets fell 3.3% for the week and are now down 21.7% for the year. Emerging Markets held up better, down 1.2% for the week, in part due to a 21% rally in oil prices. For the year, Emerging Markets are down 19.2%.

  • US Retail Sales for April plunged a record 16.4%, worse than expected, with double-digit declines across most categories. In addition, another 3.0 million people filed unemployment claims for the prior week, bringing the total of those filing for unemployment claims to over 36 million since the coronavirus impacts began.
Of Interest to Us
  • Underlying high-frequency measures suggest activity in the US has started to pick up, albeit slowly. Road traffic volumes have gone from down over 70% from pre-COVID-19 levels in early April to down less than 60% in early May. Rail Freight has increased about 5% in the first week of May from late April, and data measuring our mobility based on cell phone tracking suggests we are starting to get out more. These measures may be a good precursor to increased economic activity.
Market Data
for the week ending 5/15/2020
If you have questions about the markets or would like to talk about your investments, please contact me at  bfontana@invtrust.com  or via phone at 704.940.3544.
Investors Trust Company helps its clients make sound financial decisions by providing strategic advice and asset management services with a high level of personalized attention. If we may help you or your clients with their investment management needs, please contact one of our Relationship Team members at  trust@invtrust.com .