- June 25, 2018
- Market Commentaries
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Market Commentary, 06/25/18
The US stock markets closed broadly lower last week as the Dow fell just over 2% and both the S&P 500 and NASDAQ pulling back less than 1%. Thursday marked the Dow’s eighth daily decline in a row – the longest streak since March 2017. The Dow did reverse course on Friday and close up over 100 points to stop the streak.
The trade tensions between the US and China continue to spook investors around the globe. The concern of a trade war following the tariffs implemented by the US and China’s retaliatory measures have caused losses worldwide last week as China’s Shaghai Composite plunged 4.4%, the Stoxx Europe 600 was down 1.1%, and Hong Kong’s Hang Seng fell 1.5%.
Despite this overseas underperformance, there were several bright points in the market last week. The NASDAQ and the Russell 2000, a small cap index, both climbed to record highs on Wednesday. Additionally, crude oil prices jumped nearly 6% closing over $69 per barrel following the Organization of the Petroleum Exporting Countries (OPEC) announcing they would begin ramping up production. (Source: John Hancock)
With one week to go before the halfway point of 2018, different segments of the US equity market have exhibited sharply divergent returns. Year to date, growth stocks have outperformed value stocks by a wide margin and small caps have beaten large caps. Among major indexes, the NASDAQ has outperformed the S&P 500 and the Dow.
Wayne Copelin, CFP®
President, Copelin Financial Advisors, Inc.
514 Brooks Street
Sugar Land, TX 77478
Phone (281) 240-2902
Fax: (281) 240-2856
Securities offered through ProEquities, Inc., a Registered Broker-Dealer and Member FINRA & SIPC Advisory Services offered through Harvest Investment Services, LLC., a Registered Investment Advisor Copelin Financial Advisors, Inc and Harvest Investment Services, LLC are independent of ProEquities, Inc.