By Glenn Dorsey, Clark Capital

Most major stock indices posted gains for the month of June. Large cap stocks, as measured by the S&P 500, have increased every month since the election. The S&P 500 increased 0.62% for the month, while small cap stocks, as measured by the Russell 2000, increased 3.45%.

Value stocks took a leadership role, gaining 1.77% compared to growth stocks, which were unchanged for the month. Developed international stocks trailed domestic stocks as the MSCI EAFE Index declined 0.15% and the MSCI ACWI ex-USA Index increased 0.34%. Emerging market stocks increased by 1.04% for the month.

Fixed income markets turned in a mixed performance for June as interest rates increased over much of the yield curve in response to the FOMC’s rate increase to a range of 1% to 1.25% for the Fed Funds Rate. Credit conditions continued to improve during the month. As a result, corporate bonds outperformed Treasuries.

The yield curve steepened a bit during the month, although the 30-year Treasury bond yield declined by one basis point. The yield on the benchmark 10-year Treasury increased 14 basis points to 2.35% during the month. The Fed meets again July 25-26, and at this point, no change in rates is expected. There are four more FOMC meetings scheduled this year.

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