Nuveen TIAA

U.S. equities try to extend gains in holiday-week trading

William Riegel, Chief Investment Officer, TIAA Investments

Print

November 23, 2016

Click here for the downloadable version (PDF)

Equities

Fueled by ongoing optimism over global and U.S. growth prospects, the S&P 500 Index extended its post-election rally amid light trading by notching consecutive record closes to begin the week. However, the index edged lower during early morning trading on November 23. Meanwhile, the small-cap Russell 2000 Index stretched its winning streak to 13 straight trading days on November 22 en route to establishing a 13-year high. Equity markets in Europe were roughly flat for the week thus far, while stocks in Japan and China advanced.

Current updates to the week’s market results are available here.

William Riegel, Chief Investment Officer, TIAA Investments

Bill


Article Highlights

Fixed income

The 10-year Treasury yield rose during this holiday-shortened week, closing at 2.31% on November 22 and moving higher the next day following the release of some positive U.S. economic data. The 10-year yield has jumped 58 basis points (0.58%) for the month to date through late-morning trading on November 23, but it has risen only 14 basis points for the year as a whole.

U.S. economic data is mostly positive

This week’s batch of U.S. data reports was highlighted by encouraging consumer sentiment data. Housing data was mixed. Among the week’s releases:

Outlook

Since the election, investor sentiment has turned strongly bullish, a contrarian indicator that often presages an equity market pullback. However, it’s also possible that after moving money from equities to bonds throughout most of the year, investors are now willing to assume more risk given president-elect Trump’s perceived pro-growth agenda. Positive flows into equity funds could help support a further rise of the S&P 500 as we head into year-end.

The next Weekly Market Update will be published on Friday, December 2.

C37085