LAST WEEK
U.S. equities were mixed last week with the Dow falling .04%, SPX .16%, and Nasdaq bucking the trend ending up .16%. Small caps underperformed broader markets with the Russell 2000 experiencing its worst week in nearly three months. The decline in the S&P 500 ended its five-week winning streak as most sectors finished lower, led by Materials (Chemicals & Steel), Consumer Staples, Health Care (Managed Care & Biotech), Utilities, Financials (Banks), Consumer Discretionary, and finally Communication Services despite seeing strength in Internet names. Energy was one of the few bright spots on the week with Exploration & Production companies providing upside in the space after WTI crude gained 2.2%, led by Friday’s 3.06% rally in the commodity which stemmed from geopolitical concerns returning to the spotlight. Despite the fairly volatile start to the year, investors’ outlook still appears to be predominately bullish, due to:
- An accommodative Fed
- Stable global growth outlook
- Favorable positioning and sentiment
- The FOMO (Fear of Missing Out) Trade