Weekly Market Bullets

for the week ending 6/7/2024

• US Equity Markets were mixed last week, as strength in Payroll data suggested a healthy economy, though strong wage growth reduced the likelihood of interest rate cuts this year. The S&P 500 touched record highs before closing up 1.3% for the week to bring its gains for the year to 12.1%. The Nasdaq rose 2.4% for the week on a rebound in mega cap technology stocks and is now up 14.1% for the year, while the Russell 2000 (small cap stocks) dropped 2.1% for the week and is now down a fractional 0.03% for the year.

• Global Equity Markets increased last week, helped by interest rate cuts by the European Central Bank. Developed Markets were up 0.3% for the week and are now up 5.4% for the year. Emerging Markets rose 2.3% for the week to bring its gains for the year to 4.8%.

• US Payroll Data raises fears of more persistent inflation. Payroll gains for May were 272K, much higher than expectations of 185K and up from 165K in April. Average wages for May rose 4.1%, also higher than expected and above the upwardly revised 4.0% in April. The Unemployment Rate ticked up to 4.0% from 3.9%. After touching a recent low of 4.28% last week on hopes for a better report, the yield on the US 10-Year Treasury closed at 4.43% vs. 4.50% the prior week.

• The number of public companies listed on US stock exchanges has dropped notably since their peak in the 1990's. The number of companies listed on US exchanges is now 5,667, down 36% from 8.836 in the late 1990's. At the same time, more Americans have been investing in stocks, with assets under management in the equity industry up 13% annualized since 2000. Are equity returns going forward poised to remain positive due to a lack of public companies and continued interest in equity ownership?

Market Data

for the week ending 6/7/2024