Denali Wealth Management

2019 Q4 Market Commentary

General Market Commentary as of December 31, 2019

The fourth quarter capped off a strong 2019, with the S&P 500 up 9.1% in the quarter, finishing the year with a 31.5% gain. This run led to the US market entering into the longest bull market on record. Advances in trade negotiations, and improved global economic data boosted international equities. Developed international and emerging markets both fared well rising 8.2% and 11.8%, respectively.

In October, the Fed cut rates for the third time this year. The Committee indicated it was comfortable with a pause in the rate cuts barring a material deterioration in the economy. The yield curve is no longer inverted and the 10-year US Treasury Yield ended the year at 1.92%.

The US economy grew 2.1% in the 3rd quarter, led by healthy consumer spending. Employment numbers finished the year strong, and the unemployment rate dipped back down to a historic low of 3.5%. Manufacturing contracted last month to recent lows as businesses are cautious to invest. Overall, even with strong numbers to end the decade, the continued theme of uncertainty will likely carry into the new year.

Market Recap

Tot Return3-MO*12-MO*3-Year*5-Year*Closing Value
S&P 5008.53%28.88%13.00%9.43%3,230.78
Dow Jones Industrial Average6.02%22.34%13.03%9.87%28,538.44
NASDAQ Composite12.17%35.23%18.57%13.63%8,972.60

Source: Morningstar. The S&P 500, Dow Jones Industrial Average, and NASDAQ Composite are unmanaged indexes. It is not possible to invest in an index. Past performance is no guarantee of future results. * Price only. Does not include dividends.

All overviews and commentary are intended to be general in nature and for current interest, educational purposes and factual reference only and are subject to change based on market and other conditions.

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