Market Recap 06/12/2021

  • Market Recap 06/12/2021

    Market Recap

    December 6th, 2021


    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


    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


    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


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