Major Markets

The Major Markets closed higher with a fair amount of green across the board.

After opening higher on Monday, the S&P 500 closed the first session of the week completely flat on the day. Tuesday had an almost identical pattern. It opening higher, only to trade lower by mid-session, followed by a rally that ultimately faded into the close, to end the day flat. Yet again, Wednesday’s session traded similarly, up until the release of the Fed minutes. However, once market participants confirmed that there would not be any change to the Fed Funds rate this month, the market traded substantially higher. For the fourth session in a row, the market opened higher but then traded in a sideways range for the day. Finally, the momentum waned on Friday as the trading session ended with the only real loss of the week.

S&P Sectors

The gains in the domestic market were consistent as every S&P 500 sector had a positive return for the week with the greatest gains in the Utilities sector as they continued to benefit from lower interest rates.

Central Bank Impact

The Bank of Japan also held a meeting this last week, and similarly they did nothing to change their stance on their negative rates or their current bond-buying program.

Precious Metals also surged largely in response to the on-going lack luster view of interest rates.

Emerging Markets

Gold and silver were not the only bellwethers as the emerging markets saw the greatest gains in the major markets last week. The FOMC decision was favorable for emerging markets which have continued to out-perform other benchmarks year to date.

In fact, nearly every one of the MSCI emerging market country indices showed a gain last week. These countries continue to outperform their developed peers this year as only four of the countries reflect losses for the year. Furthermore, most of the emerging market countries are showing double returns year to date.

As the second quarter draws to a close, market participants will become more focused on the October presidential debates ahead of the November election and the final FOMC meetings for the year.