Market Review: 7/17/20
By Steven Doll, Portfolio Strategist
U.S. large-cap stocks are back above water for the year after rising over 1.0% this week on upbeat second-quarter corporate earnings and coronavirus vaccine hopes. However, U.S. small-cap stocks and international markets still remain below water as they struggle to recover from the headwinds of the pandemic. Meanwhile, the U.S. bond market continues to steadily rise as interest rates have fallen this year. That trend continued this week as the 10-year treasury yield dropped from 0.65% to 0.64% and the 2-year treasury yield from 0.16% to 0.14%. The price of gold also continues to rise as large daily increases in coronavirus cases outweighs vaccine optimism, driving the price of the haven metal up 19.0% so far this year and 0.7% this week. The price of crude oil was little changed this week and is starting to lose its rebound momentum as major oil producers start drilling again, weighing down the price of the oversupplied commodity.
Year-to Date Return (as of 07/17/2020)