Economic Data and Market Highlights
Global stocks rose 35 basis points this week represented by the MSCI World, with the MSCI EAFE rising just 12 basis points and the S&P 500 advancing just 26 basis points. Tech heavy Nasdaq index declined slightly to close the week after dropping Wednesday as Nvidia, Meta, Microsoft, and Broadcom saw losses unlike the rest of the broader market mid-week. Trading was modest in the US as the week was abbreivated due to the market holiday on Friday.
Small caps outperformed large caps this week as the Russell 2000 Index marked its best day Thursday, since mid-February and gained some ground on large cap names. Small caps jumped 1.3% for the week. Small caps are experiencing their worst performance relative to large caps in more than 20 years. Large caps saw value outperform growth more so than small caps where value only slightly outperformed during the week. The small cap index was helped by the regional bank component of the index. Despite the gains in regional banks Standard & Poor lowered its outlook on a few regional banks due to their commercial real estate exposure.
Developed markets outperformed emerging markets this week as China saw declines weighing on the emerging market index. In Europe, outperforming markets were Germany, Austria, Belgium, Italy, Spain, and the United Kingdom. Losses were seen in markets such as Switzerland, Denmark, and Finland. In Asia and Pacific markets gains were seen in Japan, India, Malaysia, New Zealand, Australia, Singapore, and South Korea. Losses in the region were mostly in China and Hong Kong.
US Mortgage rates declined this week to 6.79%, down from 6.87% a week earlier, according to Freddie Mac. Rates are down from upwards of 7% and existing home sales jumped 1.6% in February on a nationwide basis while contracts declined in high cost areas on the east and west coast. Last week, the Realtors group reported that closed sales of exting homes climbed at the fastest rate since last year.
US Consumer Sentiment jumped to its highest level since July 2021 with the University of Michigan’s final march number rising to 29.5 as long-term inflation views slipped to 2.8%, the lowest since September.
The Past Week’s Notable US Data Points
Data Source: Apollo, Barron’s, Bloomberg, BBC, Charles Schwab, CNBC, the Daily Shot HFR (returns have a two-day lag), Goldman Sachs, Jim Bianco Research, J.P. Morgan, Market Watch, Morningstar, Morgan Stanley. Pitchbook, Standard & Poor’s and the Wall Street Journal.