• U.S. equity markets declined sharply in the second quarter, falling 16.7% (Russell 3000) on persistent inflation, rising interest rates and slowing global growth.
  • International equities fell to a lesser extent, posting a 13.7% loss over the quarter (MSCI ACWI ex U.S.).
  • The broad U.S. fixed income market provided little shelter from the storm, down 4.7% (Bloomberg Barclays Aggregate) as interest rates rose during the quarter.
  • Despite cooling economic growth, the U.S. labor market remained tight during the quarter with unemployment at 3.6% in June.
  • Large cap value stocks held up relatively better, with the Russell 1000 Value outperforming the Russell 1000 Growth by over 8 percentage points this quarter.
  • The Federal Reserve raised interest rates 125 basis points during the quarter. Additionally, the Fed expects further rate hikes in 2022 to combat inflation.
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