Nationwide’s Chief of Investment Research and the Nationwide Economics team offer daily and weekly commentary and analysis of the equity and bond markets, including an overview of economic data being released, global market news, commodities and market performance by index returns. These timely insights can help you navigate markets and understand emerging trends.
The economic data last week showed slower growth in manufacturing, including contracting growth in new orders for manufacturing, and slowing consumer activity. The combination of these and persistently high inflation seemed to trigger increased recession fears as the 10-year Treasury yield fell by more than 20 basis points from last week.
Inflation spiked again for May and measures of inflation expectations rose as prices continued to rise sharply across a broadening portion of the economy. The Fed is committed to getting inflation under control, announcing a sharp 75 basis point rate hike at the June FOMC meeting with a similar increase likely in July, too. Can the Fed successfully bring inflation back within bounds without sending the economy into a recession in coming years? That is the big question driving the volatility in interest rates and equity markets.
Nationwide's Chief Economist David Berson, Deputy Chief Economist Bryan Jordan, and Senior Economist Ben Ayers provide their mid-year perspectives the economy and financial markets.
After a weak quarter for stocks and bonds, what’s next for the future direction of the market?
Mark Hackett, Chief of Investment Research, provides key insight into the forces shaping this year’s investing landscape.
Volatility remains intense, with three consecutive weeks with 5% directional moves for the first time since the early stages of the pandemic. The focus of investors has subtly shifted from inflation to growth concerns as the Fed aggressively removes accommodation. The second quarter ends Thursday, with the S&P 500 on pace for a loss of nearly 14% and the Bloomberg US Aggregate Bond Index losing 6%.
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