Inventory Market Commentary –
Thanks partly to vaccine rollouts, reopening, and financial stimulus, the U.S. economic system appears to be again on monitor. Together with the recovering economic system, stable company steadiness sheets and sturdy company earnings development led fairness markets upward throughout the second quarter of 2021. The S&P 500 hit one other all-time excessive and gained 8.55% for the quarter. International markets additionally improved, with developed worldwide and rising market shares up 5.35% and 5.08%, respectively. In the US, each sector turned in optimistic efficiency within the first half of the 12 months, although first quarter’s laggards had been typically the leaders in 2Q21. Development shares leapt to the forefront, whereas worth shares light as traders got here to consider that the inflation and supply-chain points might certainly be “transitory.” The S&P 500 Worth Index (SVX) nonetheless outperformed on a year-to-date (YTD) foundation, returning 16.29%. REITs was the best-performing sector, up 13.24%, representing a robust rebound after a troublesome 2020. The utilities sector trailed the general market by -0.41% for the quarter, because the economic system continues to increase. Robust demand for houses and continued low rates of interest have fueled the U.S. housing marketplace for greater than a 12 months, and residential costs are anticipated to stay elevated.
Speculative excesses stay in areas reminiscent of cryptocurrencies, particular objective acquisition corporations (SPACs), and “meme” shares traded by retail traders. Whatever the volatility related to these speculative property, 2021 seems to be positioning itself as a robust 12 months for the broader international and U.S. fairness markets.
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