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August 2017 Market Update

By September 7, 2017No Comments

MARKET RECAP*

  • U.S. stocks rallied in the last week of August to end the month in positive territory
    • Volatility increased due to North Korea concerns
  • The S&P 500 finished the month with a small 0.3% gain, putting the index up 11.7% year-to-date
    • Top Sectors: Technology (+3.5%), Utilities (+3.2%)
    • Bottom Sectors: Energy (-5.2%), Telecom (-3.0%)
  • Large Cap Growth outperformed Value in August by 0.6%
    • Growth now leads by 14.4% year-to-date, its widest spread since 2009
  • International developed countries underperformed U.S stocks, ending slightly negative on the month
  • Emerging markets continued to outperform all other asset classes, rising 2.4% on the month
  • Long-Term Treasury yields decreased on the month
    • The 10 year Treasury yield fell from 2.26% to 2.12%
    • This caused long-term Treasury bonds to increase 3.4%, outperforming all other asset classes

ECONOMIC NEWS**

  • The economy created 156,000 jobs in August, coming in below expectations
    • The year-over-year pace of job growth has been steadily declining since the beginning of 2015
  • The change in average hourly earnings over the past year came in at 2.5%, the same growth seen in July
  • As key economic data points followed by the Federal Reserve continue to remain steady, market expectations of another rate hike in 2017 have fallen below 25%**

*Merrill Lynch**Bloomberg. Charts are shown for illustrative purposes only. Respective services provided by ARGI Investment Services, LLC, a Registered Investment Adviser, ARGI CPAs and Advisors, PLLC, ARGI Business Services, LLC, and Advisor Insurance Solutions. All are affiliates of ARGI Financial Group.