Market Update: Tue, Mar 26, 2019 | LPL Financial Research

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Daily Insights

Fed presidents comment on yield curve inversion, balance sheet plans. Chicago Federal Reserve (Fed) president Evans acknowledged investors’ concerns about the recent yield curve inversion and noted the Fed is watching closely, though he suggested structural changes (lower trend growth and lower real interest rates) and the secular (long-term) downtrend in long-term interest rates indicate a flatter yield curve is more natural. Continue reading

Market Update: Wed, Mar 20, 2019 | LPL Financial Research

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Awaiting the Fed. The Federal Reserve (Fed) concludes its two-day policy meeting this afternoon. Though no rate hike is expected, investors will look to the policymakers’ interest rate forecasts, known as the “dot plots,” along with comments from Fed Chair Jerome Powell in his post-meeting press conference about the central bank’s plans to wind down its balance sheet. Continue reading

Time For a Small Break?

Small cap stocks staged a furious rally to kick off 2019, with the Russell 2000 Index up nearly 18% year to date at the early March peak. Of course, you may remember that small caps were down much more than large caps at the end of 2018, as the Russell 2000 lost 20.5% in the fourth quarter for the worst quarterly decline since the U.S. debt downgrade in the third quarter of 2011. Continue reading

Market Update: Friday, Mar 15, 2019 | LPL Financial Research

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S&P 500 gives resistance another try. With the S&P 500 Index’s move higher this morning, it appears to finally be taking out the key resistance level around 2817 that has plagued it for the past several months. A close near these levels would mark the highest point since before October 10, the day of the 3.3% plunge that arguably kicked off the larger sell-off. Continue reading

Market Update: Thursday, Mar 14, 2019 | LPL Financial Research

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Daily Insights

China trade deal coming together. The latest news out of Washington, D.C., continues to point to an agreement fairly soon, one of the key drivers in propelling the S&P 500 Index’s quick return to the 2800 level this week. Key points of negotiation include: Existing tariff removals, currency, auto tariffs, join venture requirements, market access, intellectual property protection, and Chinese goods purchase commitments. Continue reading