7/1/20 Market Notes
US equities finished the day higher, posting the strongest quarterly returns since 1998. The S&P 500 added 47 points (1.05%), closing at 3,100.29; up 1.4% for the month and 20% for the quarter, marking a rebound of almost 40% from the March 23rd low. The index is up 5.37% from a year ago but is still down 4.3% year-to-date and 8.45% lower than the February 19th all-time high. Yesterday’s trading session was supported by accommodative comments by Fed Chair Powell and Treasury Secretary Mnuchin along with a better than expected rebound in consumer confidence. Technology shares continued to lead markets higher after semiconductor-maker Micron Technologies (MU) beat earnings and raised guidance. Demand for semis is a leading indicator and MU's results suggest the economic recovery thesis is intact. Treasuries, the dollar, and crude oil prices declined while gold approached an eight year high. Asia stocks were generally higher overnight, supported by favorable economic data from China. European markets and US futures are negative this morning as the new quarter kicks off with geopolitical tensions rising in the wake of China's imposition of a draconian security law in Hong Kong. That law, which applies to both locals and foreigners, jeopardizes the territory's standing as an international financial center. Volatility is likely to remain elevated as markets grapple with the pace of recovery vs. the tenacity of the coronavirus. Increasing international tensions and the upcoming US election could also bring some fireworks to the party this summer.
Disclosures: This market commentary is written by the 1879 Advisors® and represents the views of 1879 Advisors®. This commentary is not investment advice and should not be used as a basis to make investment decisions. Please consult with your registered investment advisor before making any investment decisions.