OVERVIEW
Markets pushed higher across the board last week. The S&P 500 rose 1.50%, the Dow added 1.17%, and the NASDAQ led large-cap indexes with a 2.18% gain. Growth stocks outperformed, with the Russell 3000 Growth index up 2.08%. Small-caps also showed strength—S&P 600 gained 2.14%—helping trim year-to-date losses.
International stocks stayed in the green. Developed markets rose 0.71%, and emerging markets gained 2.21%. The U.S. dollar was mostly flat, giving foreign equities a neutral currency backdrop.
Bond returns were mixed. Long-term Treasuries declined 0.73%, and intermediate-term bonds slipped 0.50%, while short-term Treasuries held slightly positive at 0.08%. Investment-grade corporates fell 0.23%, while high-yield bonds rose 0.32%.
Commodities were one of the week’s bright spots. Oil jumped 6.30%, gold added 0.94%, and the broader commodity index rose 3.33%. Corn prices fell 0.75%. Real estate gained 0.62%, and MLPs climbed 2.45%. Volatility sank, with the VIX dropping nearly 10%, reflecting improved market sentiment.
KEY CONSIDERATIONS
Search Party – When I say “the Dow,” you probably think of the stock market—and for good reason. It’s easily the most well-known stock market index in the U.S., especially among the general public.
Here’s a fun fact: it just turned 129 years old a couple weeks ago. Charles Dow, the guy who co-founded Dow Jones & Company, created it back in 1896. It started out tracking just 12 industrial companies. Now it includes 30 of the biggest and most recognizable names in the country.
Although it’s not Wall Street’s go-to equity index—that title usually goes to the S&P 500—it is the one most Americans think of when they hear “stock market.” This makes it particularly useful as an indicator of American sentiment towards stocks.
And how do we measure that? Google Trends, or course. As the chart below shows, searches for “Dow Jones” tend to spike when the market takes a dive.
For example, searches exploded during the early days of the pandemic—highest ever, actually. We also saw a big spike in April during the trade shock. Safe to say, Americans were a lot more worried about stocks during those moments than at any other time in the past five years.
The good news? It’s since fallen back down to around 22. That means people are searching for the Dow at about 22% of the rate they were during peak pandemic fear. Still elevated, but toward the low end of the five-year range.
Bottom line? Most people understand that when the market drops hard, layoffs usually aren’t far behind—and that can slow down spending. But with searches for “Dow Jones” falling fast and stocks bouncing back after the president’s 90-day truce, it looks like some of that fear is fading. That’s a good sign for both consumers and companies.
This is intended for informational purposes only and should not be used as the primary basis for an investment decision. Consult an advisor for your personal situation.
Indices mentioned are unmanaged, do not incur fees, and cannot be invested into directly.
Past performance does not guarantee future results.
The S&P 500 Index, or Standard & Poor’s 500 Index, is a market-capitalization-weighted index of 500 leading publicly traded companies in the U.S.