Daily Index Insights offers a concise two-minute read on the latest news and trends in index markets. This resource includes performance data from S&P Dow Jones Indices across equities, fixed income, multi-asset, commodities, and factors. Our daily insights are designed to provide you with a comprehensive understanding of market movements, empowering you to make informed decisions based on the most current indices data and analysis.
"So we beat on, boats against the current, borne back ceaselessly into the past."
F. Scott Fitzgerald (September 24, 1896 – December 21, 1940)
On this day 157 years ago, two American financiers named Jay Gould and James Fisk tried to corner the U.S. gold market, sparking a financial panic known as "Black Friday." Their plot was foiled when President Ulysses S. Grant ordered the Treasury to release $4 million in gold into the market, causing the price of gold to plummet. Here is your daily dashboard.
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The S&P 500® retreated 0.8% yesterday amidst stronger than expected economic activity, higher energy prices and a rise in yields. Energy was the sole positive amongst large caps on the day, while Industrials and Consumer Staples also outperformed. Communication Services and the yield sensitive Utilities were the biggest laggards on the day.
- Another day, another mention of the U.S. yield curve. Increases are continuing across the curve. At the front end, the aforementioned strong economic signals have raised expectations of a hike at the Fed's next meeting, fed funds futures are currently pricing a 64% chance of a move at the end of October. The mid and long end are rising too, with the 10-year closing yesterday at 5.10%, a level last seen in 2007.
- We've previously covered how different sectors have historically performed under rising yields, but what about factors? When yields have risen, High Beta has outperformed the S&P 500 by the widest margin, followed by Pure Value and GARP. The biggest laggards have been Low Volatility and Dividend Aristocrats, while Momentum has also tended to suffer. For more on factors, check out page 4 of the dashboard.
- Momentum may have slipped down the agenda recently, but it has generated interest all year. Momentum, like all factors, is not a static measure, and this week's rebalance of the S&P 500 Momentum Index brought significant changes to several industry weights. The biggest may surprise: an 11.9% reduction in the weight of Semiconductors & Semiconductor Equipment.
