Equity markets, in general, climbed higher again last week, as both the S&P 500 (a proxy for large-cap US stocks) and MSCI ACWI (a proxy for large-cap global stocks) advanced approximately 0.7% for the week.
The relatively happy mood on Wall Street was clouded somewhat by the most recent University of Michigan Consumer Sentiment reading, however. Consumer confidence dropped by the sixth largest amount in the past half century, according to report. The intent of the report is to gauge overall consumer attitudes related to business climate, personal finance, and spending.
The report pointed toward concerns over the Delta variant as one of the primary drivers of the steep decline in score. While equity markets seemed to shrug off the news last week, it will be interesting to see whether the trend continues and, if so, if deteriorating confidence begins to impact market behavior.
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2 Year Treasury
10 Year Treasury
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Source: Morningstar, YCharts, and US Treasury as of August 16, 2021
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