Equities returned to their winning ways after last week’s fall. All major global equity indices posted gains for the week, are now positive for the year–most with double‐digit advances, and are at or near all‐time highs.
U.S. Stocks back at all‐time highs. The S&P 500 closed July near record highs, its sixth consecutive monthly advance. But outside of U.S. large caps, the picture in July was much cloudier. U.S. Small cap fell ‐3.6% and overseas emerging markets plunged ‐6.7%.
U.S. equities advanced for the third week in a row and sixth in the last seven. Major U.S. indices closed at record highs, overcoming a big drop on Thursday over fears of the spreading Delta variant and slowing global growth.
Global recovery lifts all boats. International bonds and stocks fell in June, but all major asset classes were up in Q2 as the global synchronized recovery continued. Economic activity is expansionary globally and earnings are improving globally.
U.S. equities reached more record highs after seven straight gains, it best winning streak in 10 months. It was the second straight week of gains for the S&P 500, which is now up in five of the last six weeks.