Daily Insights
Out of the woods yet? U.S. equities are drifting lower this morning, but remain well off the week’s lows following the S&P 500 Index’s 2.4% drop on Monday. While the 2800 level has offered technical support, we want to be mindful that stocks only pulled back about 4.5% on a closing basis. Continue reading
U.S. stocks have held up fairly well over the past week even as U.S.-China trade tensions have flared up. The S&P 500 Index is less than 3% below its record high on April 30. Continue reading
Daily Insights
Chinese economy clearly slowing. The latest round of Chinese data for April (retail sales, capital investment, and factory output) all missed expectations and pointed to slower growth. While China will report 6% gross domestic product (GDP) growth or more-consistent with their stated objective-actual growth is probably closer to 5%. Continue reading
Daily Insights
The latest on trade. According to Reuters, President Trump told reporters that the trade war with China was “a little squabble” and his friendship with President Xi was “unlimited,” while continuing to insist that talks hadn’t collapsed. Continue reading
Daily Insights
Volatility resources. U.S. stocks’ slide deepened May 13 with the worst one-day sell-off since January 3. The S&P 500 Index now sits 4.6% from all-time highs reached two weeks ago. While it has been a turbulent May for investors, it’s important to consider how quickly U.S. stocks have recovered this year, and how prone the S&P 500 has been to a mid-year bout of volatility. Continue reading
Daily Insights
Worst week of the year. U.S. stocks slid more than 2% last week in the worst week since December amid escalating U.S.-China trade tensions. The most globally exposed sectors — namely materials, industrials, and technology – paced last week’s declines. Continue reading
Daily Insights
Higher tariffs. Trade negotiations broke down yet again this week, with the U.S. and China failing to find common ground in this week’s talks. The U.S. will increase tariffs on $200 billion in Chinese imports, and officials threatened higher levies on another $325 billion of goods. Talks will reportedly resume today. Continue reading
Daily Insights
Chinese negotiators arrive in the U.S. Time is running out to avert the tariff increases slated to go into effect tonight (though actual implementation takes weeks, leaving more time for negotiations). The arrival of China’s chief negotiator in Washington today can be logically seen as a positive sign. Continue reading
Daily Insights
U.S. stocks fall further. Yesterday, the S&P 500 Index posted its worst day since January 3 as investors sorted through the implications of additional U.S. and Chinese tariffs. The recent equity market volatility, though unpleasant, is consistent with our expectations given our switch to a market weight allocation seven weeks ago. Continue reading
Daily Insights
Rough ride. Yesterday was a rough ride for U.S. equity investors, even though the overall loss wasn’t as notable. The S&P 500 Index sold off as much as 1.6% intraday, then rebounded to close down 0.4% as investors digested a slew of trade-related headlines. Continue reading