Despite a temporary 7% market dip in May—mostly due to the ongoing trade and tariff issues, the second quarter was a reasonably strong one for equity markets across the world.
US markets as measured by the Russell 3000 gained 4.1%, while international developed markets were up about as much at 3.9%. Emerging markets lagged but were still positive at a 0.6% return. Bonds, both globally and in the US, fared well—3.1% for the Bloomberg Barclays US Aggregate Bond Index, and 2.8% for the global version of that same index. Underlying the equity market’s decent performance was continued economic growth in the US ( 3.2%) in Q1, with not-yet-reported Q2 growth estimated to be at 1.5%. The US labor market continues to be a tight one, with the unemployment rate standing at 3.6% as the quarter ended. The month of June finished off the quarter on a strong note, with the best June US market performance in 22 years, largely due to lessening concerns on the trade front and indications that the Fed might cut rates later this year. July will the 121st month of the current economic expansion, now the longest on record.
For more information on US and global market performance, click on the image below.
