US Equity Markets overcame notable weakness early in the week due to contagion fears from the possible default of China's Evergrande property company, but rallied to post modest gains as contagion fears eased. The S&P 500 was up 0.5% for the week to bring its gains for the year to 18.6%. The Nasdaq rose a fractional 0.02% for the week to keep its gains for the year at 16.8%, while the Russell 2000 (small cap stocks) increased 0.5% for the week and is now up 13.8% for the year.
Global Equity Markets struggled last week thanks to weakness in Asia over concerns about the possible Evergrande default. Developed Markets fell 0.3% for the week as gains in Europe could not offset declines in Asia. For the year, Developed Markets are now up 9.8%. Emerging Markets dropped 1.1% for the week on continued weakness in China, bringing returns for the year to down 2.0%.
US Interest Rates hit their highest level since June. This came following Fed commentary that it could start to taper asset purchases as soon as November.The yield on the US 10-Year Treasury rose to 1.45% compared to 1.37% the prior week.
Of Interest to Us
Commodity prices are up an average of 40% from pre-COVID levels. While some prices have declined recently, natural gas prices are up over 70%, steel prices are up 67%, and lumber is up over 65% from their pre-pandemic levels. This suggests that there could be a structural shift higher in prices that may lead to more persistent inflation.
Market Data
for the week ending 9/24/2021
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