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Quarterly Market Review

Quarterly Market Review

Quarterly Market Review: April – June 2020

The Markets (second quarter through June 30, 2020)

In April, stocks rebounded from a dismal March by posting their best monthly returns since 1987, as investors were encouraged by the expectation of additional government stimulus programs and hope that the economy would be reopening soon. The Paycheck Protection Program and Health Care Enhancement Act replenished the Paycheck Protection Program, providing funding for additional small business loans, and offered financial support to hospitals, while increasing the availability of more virus testing. The Federal Reserve added trillions of dollars in funds to its lending programs. Crude oil prices rose nearly 30.0% despite collapsing into negative territory on April 20. A few states began easing lockdown restrictions and reopening a range of businesses. While there were plenty of ups and downs in the market during the month, April closed with each of the benchmark indexes listed here climbing notably higher. The Nasdaq gained 15.45%, followed by the Russell 2000, the S&P 500, the Dow, and the Global Dow.

In May, investors continued to rally to stocks as more states and foreign countries eased restrictions put in place in response to the COVID-19 pandemic. The economy continued to stagger, however. The unemployment rate reached its highest level since the Great Depression while claims for unemployment insurance pushed past 25 million. On the other hand, news of possible breakthroughs in the treatment of COVID-19 cases and the development of a vaccine for the virus provided optimism for investors. Once again, the Nasdaq led the way, advancing 6.75% by the close of May. The Russell 2000 gained 6.36%, followed by the S&P 500, the Dow, and the Global Dow.

June was a month of drastic highs and lows for stocks. For example, the Dow climbed 6.8% in the first week of the month, then fell 5.5% in the second week. However, by the close of June, each of the indexes listed here posted gains with the tech holdings of the Nasdaq leading the way, up nearly 6.0% from its May closing value.

The second quarter of 2020 notched the best quarterly performance since 1998, with each of the benchmark indexes making sizeable gains over their historically poor first-quarter tallies. However, much of the second-quarter growth in the stock market and economy is more of a bounce back from a dismal March and April, when pandemic-related lockdowns and restrictions virtually shut down the economy.

Nevertheless, stocks rose as investors focused on favorable economic data and the possibility of further government stimulus, despite rising virus cases and tepid trade relations with China. Of the benchmark indexes listed here, the Nasdaq again proved the strongest, soaring more than 30.0% for the quarter, followed by the small caps of the Russell 2000, which gained 25.0%. The large caps of the S&P 500 and the Dow closed the second quarter up nearly 20.0% while the Global Dow vaulted ahead by more than 14.0%.

Year to date, the Nasdaq remains the only index well ahead of its 2019 year-end closing value. While still in the red, the S&P 500 is within 5.0 percentage points of last year’s final mark, followed by the Dow, the Global Dow, and the Russell 2000.

By the close of trading on June 30, the price of crude oil (WTI) continued to climb, closing at $39.35 per barrel, ahead of the May 29 price of $35.34 per barrel. The national average retail regular gasoline price was $2.129 per gallon on June 22, up from the May 25 selling price of $1.960 but $0.525 less than a year ago. The price of gold finished June at $1,798.80 per ounce, slightly higher than its May 29 closing value of $1,745.80 per ounce.

Market / Index 2019 Close As of 6/30 Month Change Quarter Change YTD Change
DJIA 28538.44 25812.88 1.69% 17.77% -9.55%
NASDAQ 8972.60 10058.77 5.99% 30.63% 12.11%
S&P 500 3230.78 3100.29 1.84% 19.95% -4.04%
Russell 2000 1668.47 1441.37 3.40% 25% -13.61%
Global Dow 3251.24 2821.05 2.59% 14.23% -13.23%
Fed. Funds 1.50%-1.75% 0%-0.25% 0 bps 0 bps -150 bps
10-year Treasuries 1.91% 0.66% 2 bps 3 bps -125 bps
Market/Index DJIA
2019 Close 28538.44
As of 6/30 25812.88
Month Change 1.69%
Quarter Change 17.77%
YTD Change -9.55%
Market/Index NASDAQ
2019 Close 8972.60
As of 6/30 10058.77
Month Change 5.99%
Quarter Change 30.63%
YTD Change 12.11%
Market/Index S&P 500
2019 Close 3230.78
As of 6/30 3100.29
Month Change 1.84%
Quarter Change 19.95%
YTD Change -4.04%
Market/Index Russell 2000
2019 Close 1668.47
As of 6/30 1441.37
Month Change 3.40%
Quarter Change 25.00%
YTD Change -13.61%
Market/Index Global Dow
2019 Close 3251.24
As of 6/30 2821.05
Month Change 2.59%
Quarter Change 14.23%
YTD Change -13.23%
Market/Index Fed. Funds
2019 Close 1.50%-1.75%
As of 6/30 0.00%-0.25%
Month Change 0 bps
Quarter Change 0 bps
YTD Change -150 bps
Market/Index 10-year Treasuries
2019 Close 1.91%
As of 6/30 0.66%
Month Change 2 bps
Quarter Change 3 bps
YTD Change -125 bps

Chart reflects price changes, not total return. Because it does not include dividends or splits, it should not be used to benchmark performance of specific investments.