Market developments
Equities:
Equity markets delivered a strongly positive week. The S&P 500 Index and NASDAQ Composite Index managed to break their seven-week slump, thanks to three consecutive days of gains to end the week. With bond yields falling, the technology-heavy NASDAQ performed well. Within the S&P 500, consumer discretionary led the rally, followed by energy and financials stocks.
Fixed income:
Yields continued to decline in North America, possibly implying market participants’ shifting focus away from high inflation and towards slowing economic growth.
Commodities:
Oil continued to perform well, recording a fifth consecutive weekly gain. Gold eked out a gain, helped in part by falling yields. Copper prices advanced, bucking their medium-term downward trend, as marginally easing COVID19 restrictions in China bolstered the case for greater demand; China is the world’s largest importer of copper.