William Riegel, Chief Investment Officer TIAA Investments
September 2, 2016
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The middle-of-the road report dampened expectations for imminent Fed action, boosting global equities. In light trading ahead of the Labor Day weekend, the S&P 500 Index was primed to extend its modest gains from earlier in the week. Meanwhile, Europe’s broad STOXX 600 returned 2% for the week (in local currency terms) to reach a four-month high.
William Riegel, Chief Investment Officer, TIAA Investments
Current updates to the week’s market results are available here.
Returns for non-Treasury “spread sectors” were broadly negative for the week through September 1. High-yield bonds bucked that trend with a small gain.
Among the week’s other releases:
That said, we believe a pullback represents a buying opportunity. Although the economy’s momentum has waned slightly, its overall trend is still positive, with third-party surveys moving higher over the past six months and many economic data releases surprising to the upside. In addition, the equity market’s advance has been led by Financials, small-cap stocks, and cyclical industries such as machinery, all of which tend to outperform when the economy is stronger.
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