Weekly Market Pulse

WEEK OF SEP. 9 THROUGH SEP. 13, 2019

The stock market went straight up last week — the Dow Jones was up 1.57% while the S&P 500 and Nasdaq added 0.96% and 0.91%, respectively.

Eight of eleven sectors were higher, led by Financial’s 3.83% jump and Energy’s 3.47% spike. Real Estate dropped 3.04% on the week.

Internationally, Developed Markets climbed 2.19% and Emerging Markets similarly went 1.64% higher.

After inverting to end the month of August, the 10-2 Year Treasury Yield Spread has consistently widened and is currently 0.11%.

Last week, investors rotated rather than retreated, indicating that there is potential for this bull market to continue to charge on.

Small- and mid-caps sharply outperformed their large-cap brethren, while the S&P 500’s value subset significantly outpaced its growth counterpart.

Finally, cyclical sectors retook the lead, lapping the slowing defensive groups. Many technicians hold out little hope for stocks in general to set meaningful new highs without being accompanied by small caps. And with small-caps beginning to show some leadership, investors are hopeful that these indices will soon set new highs of their own.

While that would be encouraging, history says it would not necessarily be a game changer, as post simultaneous new highs by large and small caps over the past 40 years have led to only slight improvements in performance