Weekly Market Update
June 29, 2020
Week Ending: June 26, 2020

U.S. stock prices declined as new coronavirus cases accelerated across certain regions of the country. Small and medium sized businesses delivered mixed results; however, a clear preference for growth stocks was evident, regardless of company size. Higher growth sectors such as technology outperformed while more cyclical sectors such as energy and financials declined for the week. Developed foreign stocks in Europe and Asia outperformed U.S stocks for the fourth consecutive week while Emerging Market stocks outperformed developed foreign markets.

U.S. Treasury yields declined for the week (bond prices and yields move in opposite directions) as investor sentiment pivoted and demand for higher quality bonds increased. Government bonds outperformed while high yield corporate bonds lagged. Investment grade corporate bonds are yielding approximately 2.2% and high yield corporate bonds are yielding more than 6%.

Initial jobless claims rose by another 1.5 million last week, but Americans claiming ongoing unemployment benefits claims dropped below 20 million for the first time since late April. The IMF downgraded 2020 global growth to a nearly 5% decline, which if realized, it would be the largest contraction since 1946.