Market Flash Report - July 2020

Key Takeaways

• The positive streak for the S&P 500 continued in July. The index increased for the fourth month in a row as equity asset classes were positive across the board.
• Big winners for the month included Emerging Markets, U.S. Large Cap, High Yield, and precious metals such as gold and silver. The U.S. Dollar gave back the gains from earlier in the year, falling nearly 5% during the month.
• Year-to-date and trailing twelve-month performance are both starting to look a bit better, but outside of U.S. Large Cap, most equity indices still have a ways to go before getting back to even on the year.
•  Economic activity has moderated in recent weeks due to the increased number of infections and ongoing measures to slow the spread. Ugly Q2 GDP reports came with little surprise as widespread shutdowns in April and May severely impacted economic output worldwide.
• Congress is negotiating the next round of stimulus measures with Senate Republicans proposing another $1 trillion plan. With nearly 30 million people currently collecting some form of unemployment benefit, an added stimulus is needed to help consumer spending continue to recover