Global stocks advanced for the fourth straight month with returns of just over 5% during July. Since the 21% decline in the first quarter, global stocks have now rebounded more than 25%, marking their best four-month percentage gain in over 20 years.
Domestic stocks returned just over 2% for the month of June, ending their best quarter in over 20 years. During the first two quarters, U.S. stock performance reflected an almost perfect mirror image … gaining 22% during the second quarter, after losing nearly 21% during the first three months of the year.
Global stocks ended the week 2% higher as investors struggled to reconcile the benefits of economic recovery against the rising rate of coronavirus infections. Oil prices closed just shy of $40 per barrel, for their highest close since March.
The week started well, but ended on a down note for stocks. The Dow Industrials lost 1500 points, as the broad U.S. market declined 5% for the week. Global equities are now down nearly 8% year-to-date.
Stocks had yet another huge week. Global stock markets advanced nearly 6% over the past five days and are now up over 22% quarter-to-date. U.S. stocks have now erased most of their “coronavirus losses” and are now down less than 1% for the year.
Domestic stocks returned 5% during the month of May and registered their best two-month performance since April 2009. Global stock markets have rallied more than 30% since the market lows reached in March … reducing year-to-date losses to single-digits.
Stocks rallied last week on hopes of an economic recovery, as states around the country eased coronavirus restrictions. All 50 states have now begun reopening to revive economies decimated by the pandemic. Rules vary state-by-state as well as place-by-place, including restaurants, churches, and schools.
Last week was chockfull of historically dreadful economic reports, which included sharp declines in retail sales and industrial production, along with an additional 3 million Americans claiming unemployment benefits. Global stock markets were down just over 2% for the week … probably not all that bad a result considering the economic damage..
The April jobs report came out on Friday, and as anticipated, the numbers blew away any historical comparison. The bottom line: The U.S. economy lost 20.5 million jobs last month and the unemployment rate rose to 14.7 percent. .
Stock markets had their ups and downs last week, but the three major U.S. indexes ended with only minor declines. The week began with optimism over medical advances and the easing of lockdown constraints, but ended with concerns over jobless claims, corporate earnings, and the collapse of consumer spending.
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