US Stocks' Best Quarter Since 1998

US Stocks' Best Quarter Since 1998

over 3 years ago2 mins

Mentioned in story

US stocks did more than just snatch victory from the jaws of defeat last quarter: they ended up bringing home their best quarterly performance since the end of 1998 🏆

What does this mean?

Ever since March’s “bear market” selloff, investors seem to have been encouraged by the promise that major central banks and governments would do whatever they could to prop up the economy and, by extension, markets. And more recently, the reopening of businesses seems to have buoyed investors even more – despite the ongoing pandemic.

Source: The Wall Street Journal
Source: The Wall Street Journal

This much was clear from the 20% rise in the key US stock market index, the S&P 500, last quarter 📈 That’s its biggest quarterly increase in more than 20 years, and brings its annual performance to “just” a 4% decline. Still, it’s no Nasdaq Composite: the tech-focused index has risen 12% this year – including a 31% jump last quarter.

Why should I care?

This month kicks off with a host of second-quarter company updates. Analysts are expecting profits to be 44% lower on average than the same time last year – partly due to a 151% drop for energy companies 💡 But it’s not all bad: they think utilities – which, like energy companies, comprise 3% of the market – won’t see their profits drop at all. Of course, with almost 200 companies having abandoned forecasts altogether, it’s still a bit of a puzzle: things could be much worse than expected, or – if Wednesday’s stock market rise means anything – even a bit better.

Daily Brief Image

Coronavirus has made it tricky to estimate companies’ fortunes this year, sure, but analysts reckon the upcoming US presidential election has made forecasting almost pointless anyway 🇺🇸 They’re concerned new policies could rattle healthcare or financial services companies. So while Bank of America thinks US stocks could fall another 7% this year, others have ditched their forecasts altogether.

Daily Brief Image
Finimize

BECOME A SMARTER INVESTOR

All the daily investing news and insights you need in one subscription.

Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.

/3 Your free quarterly content is about to expire. Uncover the biggest trends and opportunities. Subscribe now for 50%. Cancel anytime.

Finimize
© Finimize Ltd. 2023. 10328011. 280 Bishopsgate, London, EC2M 4AG