US Equity Markets were up for the holiday-shortened week last week, as weaker-than-expected economic data paradoxically pushed markets higher as fears around rates and inflation eased. The S&P 500 increased 0.6% for the week to bring its gains for the year to 12.6%. The Nasdaq rose 0.5% for the week and is now up 7.2% for the year, while the Russell 2000 (small cap stocks) was up 0.8% for the week to bring its gains to 15.8% for the year.
Global Equity Markets rose last week as enthusiasm around an economic recovery gains steam. Developed Markets were up 0.7% for the week, as European shares rallied on improving economic hopes to offset growing US tariff concerns that weakened Asian equities. For the year, Developed Markets are now up 10.9%. Emerging Markets rose a notable 1.5% for the week on improving COVID cases to bring their gains for the year to 7.0%.
US Economic Data generally came in below forecasts last week. Most notably, Payroll gains for May came in at 559K, a nice improvement from April's level of 278K but well below expectations of 720K. The Unemployment Rate for May declined to 5.8% from 6.1% in April.
Of Interest to Us
Energy prices have surged in 2021, and production discipline from OPEC combined with rising demand from the global economic recovery could continue to put upward pressure on prices. Oil prices closed last week at $69.38/barrel, the highest level since October 2018. For the year, oil prices have risen 43%. This presents yet another data point of rising inflation across the economy.
Market Data
for the week ending 6/4/2021
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