The S&P 500 closed June at its 34th all-time high of 2021, capping a fifth straight daily gain. Moreover, the index also registered its fifth consecutive monthly and quarterly gains, its longest winning streak since the end of 2017. The gains were largely driven by broad based vaccination rates, reaching nearly 60% of American adults, which has allowed large swaths of the economy to re-open.
Amid the strong quarterly performance, investors have been debating whether the acceleration in inflation will be transitory or the start of a longer-term trend that might prompt the Federal Reserve to quicken its outlook for tapering monthly asset purchases and interest rate increases. In June, the back and forth inflation debate triggered stocks to log both their worst week since October and their best week since February.
- The S&P 500 ended the second quarter with its best first half (YTD) performance since 2019. Stocks are now in the second year of a bull market.
- In June, the Dow Industrials crept just 0.02% higher and the Nasdaq Composite gained 5.55%.
- For the quarter, the Dow Industrials added 1,521 points (+5.08%) and the Nasdaq Composite surged 9.68%. • Since plunging to the pandemic bear market low last year in March, the S&P 500 has risen 96.7%, the Dow Industrials rebounded 91%, and the Nasdaq Composite (+113.5%) has more than doubled.
- U.S. crude oil futures posted their best half-year performance since 2009, up 51.4% to close out the quarter at $73.47/barrel.
- Apart from escalating housing prices, lumber prices have proven to be transitory, falling 40% in June for its largest pullback on record dating back to 1978.
The Quarterly Recap is published by Cetera Investment Management LLC, an SEC registered adviser owned by Cetera Financial Group. Cetera Investment Management provides market perspectives, portfolio guidance, model management, and other investment advice to its affiliated broker-dealers, dually registered broker-dealers and registered investment advisers.
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