Equities started the day in the green, but steadily lost ground throughout the trading session. Despite today’s slip up, most asset classes finished the week with a positive return.
Below is a brief weekly recap of the major asset classes.
The NASDAQ led the pack this week thanks in part to stocks like Microsoft, Amazon, Apple and Facebook.
Because these 4 stocks make up about one-third of the index, they often dictate the NASDAQ’s performance from week to week – for better or worse.
Also benefiting from the above 4 stocks was the S&P 500. It was up +1.9% this week and has bounced +39% since it’s low on March 23rd.
Here’s a look at the sectors that drove the S&P’s performance over the last 5 days:
As has been the case for much of the recovery, Tech and Healthcare were the winning sectors.
US Small Cap
US Small Cap stocks continued their impressive recovery (up +2.3% this week) and despite a couple hiccups, over the past few months it’s been a steady climb higher – up +43% since it’s bottom on March 18th. This bounce has been the best of the major equity indexes (Small Cap in red):
Developed international and emerging market stocks were up +1% and +0.7%, respectively – lagging the US, but still positive. Here’s a look at the performance breakdown of the top 5 countries held in the MSCI All Cap World ex-US Index (ranked by return, not weighting):
High Quality Fixed Income
Treasury maturities experienced a slight drop in yield during the week, with the long end of the curve being the lone exception.
As you’d expect, high quality short and intermediate-term bonds squeezed out a positive weekly total return, while long-term treasuries were basically flat.
High Yield Bonds
Benefiting from their positive correlation to equities, high yield bonds had a decent week – gaining +0.53%. The asset class has undoubtedly been supported by the Fed’s plan to buy corporate bonds. On a total return basis, the iShares iBOXX High Yield Corporate Bond ETF (HYG) is up +23% since March 23rd.
Enjoy the weekend.
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