- 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.