Market Recap: January 2015
By Mark FisselPosted on February 2nd, 2015
(Un)Happy New Year: Fresh uncertainties in Europe, slowing economic growth, anticipation of a looming Federal Reserve rate hike, and a stronger dollar all contributed to a volatile month for equities. The losses weren’t good news for believers in the January Effect (the idea that equities’ behavior in January suggests what might happen during the rest of the year). However, it might also be useful to remember that the S&P 500 lost 3.6% last January but ended 2014 up 11.4%.
Oil prices fell below $50 a barrel, but that seemed to be a mixed blessing. Lower gas prices boosted consumers’ spending power, but the sharp declines also raised questions about whether prices would fall so far that energy companies would cut back on jobs and/or ongoing operations. And as investors sought out the safety of U.S. Treasuries, the benchmark 10-year yield lost roughly half a percent in January as prices rose.
| Market/Index | 2014 Close | Prior Month | As of 1/30 | Month Change | YTD Change |
|---|---|---|---|---|---|
| DJIA | 17823.07 | 17823.07 | 17164.95 | -3.69% | -3.69% |
| Nasdaq | 4736.05 | 4736.05 | 4635.24 | -2.13% | -2.13% |
| S&P 500 | 2058.90 | 2058.90 | 1994.99 | -3.10% | -3.10% |
| Russell 2000 | 1204.70 | 1204.70 | 1165.39 | -3.26% | -3.26% |
| Global Dow | 2501.66 | 2501.66 | 2441.41 | -2.41% | -2.41% |
| Fed. Funds | .25% | .25% | .25% | 0 bps | 0 bps |
| 10-year Treasuries | 2.17% | 2.17% | 1.68% | -49 bps | -49 bps |
Chart reflects price changes, not total return. Because it does not include dividends or splits, it should not be used to benchmark performance of specific investments.
Source: Broadridge