US Equity Markets posted healthy gains last week, as a continued drop in interest rates helped calm concerns about rising inflation. The S&P 500 rose 1.2% for the week to bring its gains for the year to 11.9%. The Nasdaq continued to bounce last week, up 2.1%, and is now up 6.7% for the year. The Russell 2000 (small cap stocks) rallied 2.4% for the week and is now up 14.9% for the year.
Improving hopes for an economic recovery drove Global Equity Markets higher last week. Developed Markets rose 1.2% for the week and are now up 10.1% for the year. Emerging Markets were up 2.3% for the week to bring their gains for the year to 5.4%.
US Interest Rates have steadily ticked down despite rising inflation, as some economic data have softened. The yield on the US 10-Year Treasury closed last week at 1.58%, down from 1.73% at the end of March, as Consumer Confidence missed expectations as rising prices weigh on consumers' economic outlook.
Of Interest to Us
Wage inflation may be starting to rear its head, supported by strong demand for labor as the economy re-opens. Wages have increased 7.7% year-over-year for each of the past two quarters, marking the highest increases in wages in over 40 years. Rising productivity has helped offset the wage increases, but will that be sustainable to keep inflation in check in the quarters ahead?
Market Data
for the week ending 5/28/2021
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