Why The Equity Markets Are Out Of Touch

The equity markets closed the quarter and the first half of the year on a high note with some major indexes at interim highs. The table shows last fall’s market lows for the S&P 500, Nasdaq, the DJIA, and the Russell 2000, their levels at year’s end and for last Friday (June 30), and the percentage changes for those indexes from their lows to year’s end, to June 30 and year to date.

The DJIA, at 34,408 is still -5.5% below its January 5 ’22 all-time high (36,407). Nevertheless, it has rallied nearly 20% from its September 30 ’22 interim low. The S&P 500 closed on Friday at 4,450 and it has been on a tear for the past two weeks. However, it is still -7.2% below its 4,797 all-time high (January 3 ’22). Like the S&P, the Nasdaq, at 13,788, remains -10.3% below its 15,374 all time-high (September 7 ’21). Nevertheless, it too has been streaking for nearly all of June.