Market Recap
December 6th, 2021
Markets
Fears of inflation and the Omicron variant continued to spur volatility for a second week. US major indices (0.9-3.7%) extended their decline, with the Nasdaq (2.6%) faring worst among the large-cap indices. The VIX (7.2%) surged and briefly touched 35, its highest level since January 2021
Sectors
Cyclicals and small-caps underperformed defensives and large-caps. Utilities (1.0%) led among the US sectors, followed by a modest gain for real estate (0.1%). Communication services (2.7%) and consumer discretionary (2.4%) tumbled
Rates
US and European yield curves flattened reflecting concerns over further Covid shutdowns and a possible acceleration of monetary tightening by the Fed. The US 10-year treasury yield (12.6 bps) dropped sharply back to 1.36% from 1.69% two weeks ago. US Short-term yields rose on concerns of persistent inflation following Chairman Powell’s testimony. The MOVE (11.5%) index fell
Commodities & FX
Oil (2.8%) prices continued to sink, posting more than a 20% decline from recent highs (October), as the Omicron variant rattled the markets. Gold (2.9%) and silver (5.9%) continued to decline, and the USD (0.1%) remained generally muted vs. major currencies basket
Last Week's Headlines
Our Favorite Charts
US CEO Economic Outlook at Record-High
Source: Business Roundtable
Core CPI vs Inflation Target
Source: Haver Analytics, IMF
Market Performance
Disclaimer
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