ClientFirst Financial Strategies
Financial Planning and Portfolio Management
Finally, after enduring downdrafts the past 10-11 weeks, we experienced positive returns from all three major US stock market indices. Although it may be an aberration in a bear stock market, it still feels good.
Both the S&P 500 and Nasdaq have suffered losses 10 of the past 11 weeks while the DJIA has now been down 11 of past 12 weeks. Last week was the worst carnage since March 2020.
Everything is going up in price—gas, food, shipping, apparel, etc.—except the US stock market.
Well, the euphoria of gains in the last trading week of May wore off quickly! June kickstarted with negative returns (i.e., DJIA: -1.05%, S&P 500: -1.63%, Nasdaq: -2.47%).
It was another difficult week for the major US stock market indices (i.e., DJIA: -2.91%, S&P 500: -3.04%, Nasdaq: -3.82%). Make that 8 weeks in a row of drawdowns for the DJIA and 7 straight for the S&P 500.
It seems like “Groundhog Week,” so to speak. All three major US stock market indices posted losses again (i.e., DJIA: -2.14%, S&P 500: -2.41%, Nasdaq: -2.80%). Yes, this movie is getting old.
If you look at the theory of relativity, then last week wasn’t so bad! Yes, all three of the major US stock market indices were down (i.e., DJIA: -0.20%, S&P 500: -0.20%, Nasdaq: -1.54%). However, on a relative basis, it wasn’t as bad as the past several weeks!
This past week was a doozy with all three major US stock market indices closing down (i.e., DJIA: -2.46%, S&P 500: -3.28%, Nasdaq: -3.93%). In fact, the month of April posted its worst showing for the S&P 500 since March 2020 and the tech-heavy Nasdaq since October 2008!
When there are more than two data points, it may indicate a trend! For the past three weeks (and a fourth for the DJIA), the US stock market indices have posted losses (i.e., this past week: DJIA -1.85%, S&P 500 -2.75%, Nasdaq -3.83%).
You know how children sometimes test your patience? That’s what we’re running into with the US stock market these days! This past week generated losses in all three major US stock market indices (i.e., DJIA: -0.27%, S&P 500: -1.26%, Nasdaq: -3.86%)