- U.S. stocks gave back some of last week’s gains amidst worries that the Fed’s efforts to quell inflation could push the economy into a recession.
- Last week, the S&P 500 Index closed out the worst first half of the year since 1970. Notably, the benchmark reached its all-time high on January 3rd, amplifying the extent of the year-to-date drawdown.
- Defensive areas of the market generally outperformed. Within the S&P 500, the best performing sectors included utilities, consumer staples, and healthcare. The energy sector was also positive reflecting higher oil prices.
- More cyclically exposed and growth-oriented sectors lagged. Bottom performers included the consumer discretionary, communication services, and IT sectors.
- Year-to-date, the S&P 500 Index remains right on the verge of bear market territory or a decline of 20% or greater. Growth stocks continue to lag value shares while small-caps generally have lagged large-caps.
