NDW Morning Pulse
Below are highlights from the NDW Morning Update Video for the morning of 08/13. Access the the video on the NDW Morning Update Video page.
- Equities improved broadly over the past day, with the iShares MSCI Emerging Markets ETF EEM gaining 1.57%, The Russell 2000 Index RUT gaining 0.61%, and the S&P 500 Index SPX gaining 0.26%.
- This week's featured research focuses on the biotechnology industry group, which recently crossed above the 5.0 level on our Asset Class Group Scores (ACGS) page. Historically, such elevated readings have signaled broad-based strength within the group and have been followed by robust returns, including an average one-year gain exceeding 31%.
- Following July's CPI report, which was broadly in line with expectations, futures markets are pricing in only a 32% chance of a rate hike at the September 16, 2026 FOMC meeting. By December, however, the probability rises to 68.5%, indicating that investors still expect the Federal Reserve to deliver at least one rate increase before year-end.
- Emerging markets outside of China remain one of the strongest-performing areas of the global market. The iShares MSCI Emerging Markets ex China ETF (EMXC) is up 33% year-to-date and has outperformed the iShares MSCI China ETF (MCHI) by 41 percentage points. The sustained relative strength reflects improving participation across several major emerging economies, while Chinese equities continue to lag.
- As we move into the latter half of the year, several high-profile companies have yet to report earnings. NVIDIA (NVDA) is scheduled to report on 8/26, Broadcom (AVGO) on 9/2, and Walmart (WMT) on 8/20, with each announcement expected to provide important insights into the health of key areas of the economy.
