• 1879 Advisors

5/22/20 Market Notes

US and global equities backed off on Thursday, primarily in response to escalating tensions with China. The S&P 500 gave up 0.78%, the Dow lost 101.78 points (-.41%), and Nasdaq was down just shy of 1%. Treasury yields were mostly unchanged and the dollar was up slightly. Hong Kong equities dropped more than 5% overnight after China announced new security laws that investors feared would jeopardize the territory's status as an international financial center.

Economic data released yesterday were mostly benign. Leading economic indicators and existing home sales declined slightly less than expected and the Philly Fed manufacturing Index improved by a slightly smaller amount than expected. Initial jobless claims were down from the prior week and in line with expectations. Economic data is expected to begin to show improvement from April releases. Fed Chair Powell reiterated his recommendation for further stimulus, a sentiment echoed by the Treasury Secretary.

Looking ahead, equity futures are pointing to another subdued opening as Hong Kong and Asia lead global equities down. European bourses are slightly lower; and safe-haven US dollar, Treasury and gold prices are up. Sincerely,

1879 Advisors

Disclosures: This market commentary is written by the 1879 Advisors® and represents the views of 1879 Advisors®. This commentary is not investment advice and should not be used as a basis to make investment decisions. Please consult with your registered investment advisor before making any investment decisions.

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