June 2020 Market Recap
Anna Rathbun, Chief Investment Officer
During the month of June the markets held tight to the hope of the global economy returning to normal operations, even as the number of COVID-19 cases continued to rise throughout the month. Globally, we saw confined flare-ups of infection case numbers in major cities which were handled in a local manner. For the U.S., the economic updates from the month of May showed signs of rebounding from the economic lockdowns in April. However, a continued opening of the economy would depend on how well our society could control the infection rate. With various vaccine options still in developmental stages, headline news of infection spikes around the world played an influential role in market trends.
- Global equity markets advanced during the month of June, despite some volatility.
- This was also a month of international equity outperforming domestic stocks.
- The Federal Reserve has repeatedly reminded the public that the future with COVID-19 remains highly uncertain, and that it is committed to supporting a properly functioning market.
- By month end, the U.S. Treasury yield curve had not moved meaningfully since the end of my May.
- On the credit side of things, given the volatility in the equities around COVID-19 flare-ups, corporate spreads also fluctuated throughout the month.
As we entered the summer months there was some hope that the number of COVID-19 cases would stay muted, even as we reopened the economy and people spent more time outdoors. The coronavirus, however, is anticipated to be around us into the foreseeable future. Sights are set on the development of a viable vaccine as the pivoting agent to bring full confidence back into the economy. Until then, the landscape for commerce is expected to remain challenging for many businesses. Difficult situations, however, can hopefully present new opportunities.
For more information on the June 2020 Market Recap, please contact CBIZ Investment Advisory Services.
The information included in this update is provided for informational purposes only and should not be construed as investment advice. The views expressed are those of the author based on the data available when this update was written and are subject to change based on market conditions or other factors. CBIZ Investment Advisory Services and/or CBIZ Retirement Plan Services disclaims any liability for any direct or incidental loss incurred by applying information supplied in this update.
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