Market Update: Mon, Jun 1, 2020 | LPL Financial Research

DAILY INSIGHTS

Stocks opened lower. Stocks are down slightly this morning as investors weigh progress toward reopening economies and stimulus packages versus escalating US-China tensions and unrest in many US cities. Overnight the MSCI Asia Pacific Index climbed 1.6%, while the Stoxx 600 Index in Europe is solidly higher in midday trading. Continue reading

COVID-19 In Charts

Market Blog

The S&P 500 Index flirted with closing above 3,000 yesterday, even as much of the economic data is some of the worst we’ve ever seen in our lifetimes. We are often asked how this is possible. The reality is the double backstop of historic fiscal and monetary policy combined with optimism over a potential vaccine coming before the end of 2020 has created a surge of market confidence, leading to a massive equity rally. Continue reading

Market Update: Wed, May 27, 2020 | LPL Financial Research

DAILY INSIGHTS

Stocks displaying strength. The S&P 500 Index opened above the 3,000 level, as equities around the world continued to rally on reopening optimism. Fiscal stimulus is in the air as well, as the European Commission is reportedly set to propose a 750 billion euro recovery package, while Japan is finishing a $1.1 trillion stimulus package. Tensions between the United States and China remain heightened, but contained new cases of COVID-19 are helping offset those worries. Continue reading

Corporate Bond Spreads Decline as Fed Increases ETF Purchases

Economic Blog

The Federal Reserve (Fed) increased its bond exchange-traded funds (ETF) purchases in the week ending May 20 (the most recent data available), adding another $1.5 billion in bond ETFs to its balance sheet, bringing the total holding to $1.8 billion. With Fed purchases accelerating, the average investment-grade corporate bond spread dipped below 2% last week for the first time since March 11. (Credit spreads reflect market participants’ perception of credit risk.) As shown in the LPL Chart of the Day, spreads had been largely flat for about a month following the initial declines off 2020 peaks despite stock market gains, but Fed buying may have been a catalyst for further compression. Continue reading

Market Update: Tues, May 26, 2020 | LPL Financial Research

DAILY INSIGHTS

Markets higher after holiday. Following the big gains in US equities last week, the S&P 500 Index opened above the 3000 level for the first time since early March. Asian and European markets fared better as well, with Japan a standout. Moreover, WTI crude prices are higher after a solid four-week showing. Meanwhile markets remain supported by signs of recovery as more of the US economy reopens Continue reading