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Weekly Market Recap: April 6, 2020

The week in review

  • Markit/ISM mfg. PMI 48.5/49.1
  • Markit/ISM non-mfg. PMI 39.8/52.5
  • Jobless claims at 6,648k
  • Unemployment at 4.4%
  • Consumer confidence at 120.0

The week ahead

  • JOLTS
  • CPI/PPI
  • Consumer sentiment
  • FOMC March Meeting Minutes

Thought of the week

Markets turned sharply negative in the first quarter of the year as the COVID-19 pandemic and social distancing brought certain areas in the global economy to a halt. U.S. equities dropped by the most in a quarter since 2008, with small cap being the worst performer at -30.6% and large cap stocks returning -19.6%. The global spread of the virus led to a sell-off in international equities, which delivered double-digit negative returns as well.

Fixed income played its defensive role and delivered a positive return of 3.1%, as the Federal Reserve cut interest rates to zero and announced unlimited quantitative easing. And while global high yield outperformed equities, it still finished thequarter at -15%, given concerns around the effect of shutdowns. Additionally, commodities dropped by -23.3% with the double shock of decline in demand and a plunge in oil prices after a rise of tensions between Saudi Arabia and Russia. While the outlook for the rest of the year is highly uncertain, investors should remember that the disruption will eventually end and the economy will bounce back once the virus is contained. In times like these, a balanced approach to asset allocation is essential for long-term investors, with a focus on high-quality companies that can weather this downturn and thrive in the economy that will emerge.

JPM: Chart of the Week April 6 2020

Click here to access the material on J.P. Morgan’s website.

Past performance does not guarantee future results.

Diversification does not guarantee investment returns and does not eliminate the risk of loss.

Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. We believe the information provided here is reliable, but do not warrant its accuracy or completeness. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The views and strategies described may not be suitable for all investors. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, accounting, legal or tax advice. References to future returns are not promises or even estimates of actual returns a client portfolio may achieve. Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation.

The price of equity securities may rise or fall because of changes in the broad market or changes in a company’s financial condition, sometimes rapidly or unpredictably. International investing involves a greater degree of risk and increased volatility. There is no guarantee that companies that can issue dividends will declare, continue to pay, or increase dividends. Investments in commodities may have greater volatility than investments in traditional securities, particularly if the instruments involve leverage.

JPMorgan Distribution Services, Inc., member of FINRA.

J.P. Morgan Asset Management is the marketing name for the asset management businesses of JPMorgan Chase & Co. Those businesses include, but are not limited to, J.P. Morgan Investment Management Inc., Security Capital Research & Management Incorporated and J.P. Morgan Alternative Asset Management, Inc. and JPMorgan Asset Management (Canada) Inc.

©JPMorgan Chase & Co., April 2020

Unless otherwise stated, all data is as of April 6, 2020 or as of most recently available.

Disclosure: J.P. Morgan

Past performance does not guarantee future results.

Diversification does not guarantee investment returns and does not eliminate the risk of loss.

Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. We believe the information provided here is reliable, but do not warrant its accuracy or completeness. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The views and strategies described may not be suitable for all investors.

This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, accounting, legal or tax advice. References to future returns are not promises or even estimates of actual returns a client portfolio may achieve. Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation.

The price of equity securities may rise or fall because of changes in the broad market or changes in a company’s financial condition, sometimes rapidly or unpredictably. International investing involves a greater degree of risk and increased volatility. There is no guarantee that companies that can issue dividends will declare, continue to pay, or increase dividends. Investments in commodities may have greater volatility than investments in traditional securities, particularly if the instruments involve leverage.

JPMorgan Distribution Services, Inc., member of FINRA.

J.P. Morgan Asset Management is the marketing name for the asset management businesses of JPMorgan Chase & Co. Those businesses include, but are not limited to, J.P. Morgan Investment Management Inc., Security Capital Research & Management Incorporated and J.P. Morgan Alternative Asset Management, Inc. and JPMorgan Asset Management (Canada) Inc.

 

Disclosure: Interactive Brokers

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This material is from J.P. Morgan and is being posted with permission from J.P. Morgan. The views expressed in this material are solely those of the author and/or J.P. Morgan and IBKR is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

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