Skip to main content

MARKET RECAP*

  • Global stock markets continued their momentum in January, with all major global indices posting strong gains
    • The S&P 500 continued its winning streak to 15 positive months in a row
  • The S&P 500 finished the month with a gain of 5.6%
    • Top Sectors: Consumer Discretionary (+9.3%), Technology (+7.6%)
    • Bottom Sectors: Utilities (‐3.1%), Real Estate (‐1.9%)
  • Large Cap Growth once again continued its dominance over Value, finishing the month higher by 3.2%
    • This was the widest monthly spread since February 2009
  • Small Cap stocks gained 2.6% on the month, continuing their underperformance versus Large Caps
  • International developed countries underperformed U.S. stocks by 0.6% on the month
    • Much of international’s return was due to the dollar continuing to weaken versus most major currencies
  • Emerging markets gained 8.3% on the month, bringing the twelve‐month total return of these markets to 39.4%
  • Long‐Term Treasury yields finally began to rise during the month due to higher inflation expectations and a more hawkish stance by the Federal Reserve at their January meeting
    • The ten‐year Treasury yield rose 0.32%, ending the month at 2.72%

ECONOMIC NEWS**

  • The economy created 200,000 jobs in January, up 1.5% from last January
  • Hourly wage growth came in at 2.9% growth year‐over‐year, the strongest growth seen since June 2009
  • The Federal Reserve voted to hold the Fed Funds Rate steady at 1.25‐1.50% during their January meeting
    • According to Bloomberg, the probability of another rate hike coming in March is at 99% and the odds of
      four rate hikes in 2018 rose to 28%

*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.