Investment Review - August 2024
- US equity indices were mixed in July, as investors rotated out of mega-cap technology stocks into cyclical stocks. The S&P 500 rose 0.8%, the Nasdaq Composite declined -1.5%, and the Dow Jones Industrial Average climbed 4.2%.
- Bond prices rose and yields fell in July as the market priced-in with greater certainty a Federal Reserve interest rate cut in September. The yield curve steepened though remained inverted as two-year treasury note yields fell more than ten-year treasury note yields.
- The US dollar Index fell 1.8% in July, giving up half its gains year-to-date. The drop in the dollar coincided with the drop in inflation and the drop in market interest rates. We expect this trend to continue as long as inflation data moves lower and expectations of Fed rate cuts increase.
Key Investment Statistics
Sources: FactSet, Dow Jones Publishing, Bloomberg, Bureau of Labor Statistics, U.S. Federal Reserve, Yardeni Research
Disclosure: This commentary reflects the opinions of Welch & Forbes based on information that we believe to be reliable. It is intended for informational purposes only, and not to suggest any specific performance or results, nor should it be considered investment, financial, tax or other professional advice. It is not an offer or solicitation.
For more information, call 617-557-9800, or email info@welchforbes.com.