Market Flash Report | August 2020
- The Federal Reserve updated its monetary policy framework, implying that it may allow inflation to run above it’s 2% target for an indefinite period of time.
- Economic activity improved in August, but unemployment remained relatively unchanged.
- Prospects for additional fiscal stimulus in the US weakened as Democrats and Republicans were unable to strike a deal before recess.
- Led by US equities, all major global equity indices posted strong, positive returns in August.
- The S&P 500 and Nasdaq indices hit all time highs. The Dow Jones Industrial Average has reversed most of the losses from Q1.
- Growth stocks continue to outperform value stocks.
- Small cap stocks outperformed Large Cap stocks.
- Global bond yields increased in August. The 10 Year US Treasury finished the month yielding 0.72%
- High quality credit underperformed lower quality credit.
- As the dollar weakened further, unhedged International Fixed Income outperformed its hedged counterpart.
Market Performance as of August 31, 2020
S&P 500 as of August 31, 2020
Russell 2000 as of August 31, 2000
MSCI EAFE as of August 31, 2020
MSCI EM as of August 31, 2020