U.S. and foreign stocks rallied in July and added to year-to-date gains. Bonds also rallied as interest rates came down in anticipation of the Federal Reserve cutting interest rates.


• Despite heightened volatility, the S&P 500 Index finished the month up 1.2%. The top-performing sectors were financials and industrials, while technology and communication stocks were down slightly.
• Higher-than-expected economic growth led to a sharp rally in small-cap stocks, up over 10% in July. Value stocks outperformed growth across the board.
• Foreign stocks outperformed, with the MSCI EAFE Index up 2.95%. Real estate stocks benefitted from lower interest rates and finished up 7.8%.
• The Federal Reserve left interest rates unchanged, while some of the foreign central banks began cutting interest rates.
• With Treasury yields down for the month, U.S. core bonds rallied more than 2%.
• In early August, volatility spiked and stocks sold off as concerns about a recession increased and some of the trades that had worked for an extended period have started to unwind.

Click here to read our full commentary.