Most equity indexes retreated from near all-time highs last week, as concerns over inflation and the Covid Delta variant seemed to weigh on the investor mindset. While the S&P 500 (a proxy for large-cap US stocks) was down approximately one percent for the week, other parts of the market sold-off more significantly. Small-cap stocks, for example, lagged their larger peers, losing more than five percent for the week.
The energy sector, which roared back to life as the economy came back online as the vaccine rollout progressed, dropped nearly eight percent last week, as well. The sell-off is the result of news that a breakthrough in relations between Saudi Arabia and the United Arab Emirates improves the odds of OPEC increasing oil supply in the near future.
Prices & Interest Rates
Crude Oil (US WTI)
2 Year Treasury
10 Year Treasury
30 Year Treasury
Source: Morningstar, YCharts, and US Treasury as of July 17, 2021
Past performance may not be representative of future results. All investments are subject to loss. Forecasts regarding the market or economy are subject to a wide range of possible outcomes. The views presented in this market update may prove to be inaccurate for a variety of factors. These views are as of the date listed above and are subject to change based on changes in fundamental economic or market-related data. Please contact your Financial Advisor in order to complete an updated risk assessment to ensure that your investment allocation is appropriate.