Welcome to the first GSIS Weekly: The Market in Review, created in response to client requests for a straightforward recap of what moved markets and what is ahead.
Markets were mixed this week as interest rates moved higher. Global equities declined 0.6%, international equities fell 1.3%, and U.S. equities were little changed. Higher rates put more pressure on parts of the market that are sensitive to borrowing costs.
The bond market drove much of the conversation this week. Higher Treasury yields, following the Federal Reserve's rate increase, pushed borrowing costs higher. Markets are still sorting through what that means for inflation, growth, and interest rates.
WTI crude oil stayed elevated. That matters because energy prices can feed into inflation, consumer spending, and the path of interest rates.
Outside the United States, higher global bond yields weighed on equities, while the U.S. dollar stayed firm. In credit markets, higher Treasury yields lifted overall borrowing costs.
One Thing to Watch
The 10-year Treasury yield is worth watching. Its next move will affect borrowing costs, stock valuations, and bond returns.
Looking Ahead
Next week, investors will hear from Fed speakers, observe Treasury auctions, and follow housing and consumer data for signs of how higher rates are affecting the economy. Retail earnings should also provide an update on consumer demand.
Return-table figures are from YCharts. ETF figures are total returns. The Treasury figure is the 10-year U.S. Treasury yield, not a total return. This commentary is for general informational purposes only and is not investment advice or a recommendation to buy or sell any security.