For the second consecutive quarter, earnings came in well above expectations and contributed to strong returns for domestic stocks. As was the case last quarter, the growth-oriented areas of the market easily outperformed the more defensive sectors. International stocks repeated last quarter’s dominance and both developed and emerging market returns exceeded domestic returns. Faster growth in Europe, Japan, and emerging Asia is helping drive impressive returns so far this year. Although the Fed made good on its promise to raise rates, with two rate hikes so far this year, long-term interest rates actually declined slightly as inflation came in below expectations.
Watch our market commentary video below, featuring Nicole Rice interviewing Chief Investment Officer Darin Richards, to hear more about what drove strong returns in the second quarter.
