PAS Weekly Commentary

Market Finds Renewed Strength

The S&P 500 broke a seven-week losing streak during the past week, rallying 6.6% after hitting its lowest level since March 2021 last Friday. The Nasdaq (+6.8%) outperformed slightly while the Dow (+6.2%) lagged a bit but was able to snap its longest weekly losing streak since 1932.

The first two sessions of the week saw some volatility, but the market rallied strongly after the S&P 500 managed to stay above last week's low during Tuesday's affair.

All eleven sectors finished the week in positive territory with the consumer discretionary (+9.2%) sector leading the way after underperforming earlier this month. The sector narrowed its May loss to 5.6%, largely thanks to a bounce in retail stocks after concerns about inflation and strength of consumer spending sent many of these names to their lowest levels in over a year. However, the past couple days saw renewed interest in retailers on hopes that the worst is in the past.

Mega cap names also did some heavy lifting with the likes of Apple, NVIDIA, and Tesla contributing to the rally during the second half of the week. The trio gained between 8.3% and 14.5%.

Last week's rebound in stocks that faced significant recent weakness masked another strong showing from the energy sector, which climbed 8.1%, extending its May advance to 16.9%. Crude oil, meanwhile, returned to its May high, climbing $4.72, or 4.3%, to $114.77/bbl for the week.

Treasuries recorded their third consecutive week of gains, drawing some strength from speculation that the Fed could pause its rate hikes in September. The 10-yr yield finished the week just a basis point above its 50-day moving average (2.73%).

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Past performance is not a guarantee of future results. Indices are unmanaged and one cannot invest directly in an index. Diversification does not guarantee investment returns and does not eliminate the risk of loss.

Data and rates used were indicative of market conditions as of the date shown and compiled by Briefing.com. Opinions, estimates, forecasts, and statements of financial market trends are based on current market conditions and are subject to change without notice. References to specific securities, asset classes and financial markets are for illustrative purposes only and do not constitute a solicitation, offer, or recommendation to purchase or sell a security. S&P 500 Index is a market index generally considered representative of the stock market as a whole. The index focuses on the large-cap segment of the U.S. equities market. Each company’s security affects the index in proportion to its market value. NASDAQ Composite Index is a market value-weighted index that measures all NASDAQ domestic and non-U.S. based common stocks listed on the NASDAQ stock market. Dow Jones Industrial Average is a widely used indicator of the overall condition of the stock market, a price-weighted average of 30 actively traded blue chip stocks, primarily industrials, but also includes financial, leisure and other service-oriented firms. Russell 2000 Index measures the performance of the smallest 2,000 companies in the Russell 3000 Index of the 3,000 largest U.S. companies in terms of market capitalization. MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.

Park Avenue Securities LLC (PAS) is a wholly owned subsidiary of The Guardian Life Insurance Company of America (Guardian). PAS is a registered broker/dealer offering competitive investment products, as well as a registered investment advisor offering financial planning and investment advisory services. PAS is a member of FINRA and SIPC.

2022-138887 (Exp. 08/22)

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