Weekly Market Bullets

for the week ending 4/12/2024

• US Equity Markets struggled last week as hotter-than-expected inflation spooked investors on possible Fed rate cuts and growing tensions in the Middle East caused investors pause. The S&P 500 declined 1.6% for the week to reduce its gains for the year to 7.4%. The Nasdaq was down 0.5% for the week and is now up 7.8% for the year, while the Russell 2000 (small cap stocks) dropped 2.9% for the week, bringing it into negative territory for the year, down 1.2%.

• Global Equity Markets also fell last week on weak economic data in China and rising uncertainty around future central bank actions. Developed Markets dropped 1.4% for the week and are now up 2.2% for the year. Emerging Markets were down 0.4% for the week to bring its gains for the year to 1.8%.

• US Interest Rates hit new highs for the year last week on strong inflation data. The Consumer Price Index (CPI) for March was up 3.5% from a year ago, worse than expected and up from 3.2% in February. Core CPI excluding food and energy prices was up 3.8% from a year ago, also worse than expected and in line with February levels. As a result, the yield on the US 10-Year Treasury hit a high for the year at 4.57% before closing the week at 4.52% vs. 4.39% the prior week.

• US Government interest expense is now safely over $1 trillion annually. With rising interest rates and government spending running rampant, the interest expense on US debt is now higher than US defense spending (~$850 billion) and approaching Social Security payments (~$1.4 trillion).

Market Data

for the week ending 4/12/2024