This is a new installment in an ongoing series where Marc Bautis and colleagues comment on hot topics in the financial industry. This week, Kayla Waller, Financial Planner, fills us in.
June 2023 Market Summary
Stocks had a positive June as the Dow Jones Industrial Average rose 4.7%, the S&P 500 increased 6.6%, and the NASDAQ grew 6.8% higher. June was an especially good month for small-cap stocks; the Russell 2000 Small Caps index grew 8.1%. Globally, the MSCI Developed Markets index tacked on 4.6% and its Emerging Markets counterpart increased 3.9%.
All 11 US stock sectors were positive in June. Of note, Consumer Discretionary, Industrials, and Materials all posted double-digit gains. Though defensive sectors such as Health Care, Consumer Staples, and Utilities were at the bottom of the pack, they joined the other eight sectors in contributing to June’s market rally.
US Inflation cooled to 4.05% in May, its lowest level in two years. US Core Inflation fell slightly from 5.52% to 5.33%. At The Federal Reserve’s June 14 meeting, they chose to hold the Target Federal Funds Rate at 5.25. This decision ended a streak of ten consecutive rate increases, though chairman Jerome Powell indicated the possibility of two more hikes in 2023.
Related: CPI Report Data Shows Inflation Rose 4% Annually, Lowest in Two Years
Medium-term US Treasury yields rose in June while those on shorter-term Treasury Bills or long-term bonds either declined or ended the month relatively unchanged. The 2-Year and 3-Year made the largest advances, 0.47% and 0.45%, respectively. The 1-Month Treasury Bill fell 0.04%, and interestingly enough, the long-term 30-Year was unchanged MoM as of the end of June.
New Provision Intended to Ease Student Loan Borrowers Back Into Repayment