U.S. equity markets rose 4.1% (Russell 3000) in the second quarter as the Federal Reserve reversed their outlook from multiple rate hikes in 2019 to likely cutting rates.
International equities rallied as well, posting a 3.0% gain over the quarter (MSCI ACWI ex U.S.).
The U.S. fixed income market was up 3.1% for the quarter (Bloomberg Barclays Aggregate) as interest rates declined. Additionally, the yield curve inverted again during the quarter with 3-month T-bills yielding more than 10-year Treasuries.
The U.S. labor market remained tight with June unemployment at 3.7%.
U.S. GDP growth accelerated in the first quarter up 3.1%.
Growth stocks continued their outperformance this quarter with the Russell 1000 growth outperforming the Russell 1000 value by 80 basis points.
The Federal Reserve remained on hold during the quarter but signaled the likelihood of a coming rate cut.