US Stocks Led Global Equities Higher Last Week

Stocks in the US rebounded last week, posting their strongest weekly gain so far this year and topping the performance ranking for the major asset classes, based on a set of exchange-traded products.

Vanguard Total Stock Market (VTI) popped 1.7% for the five trading days through Sep. 15, closing at a record high. Emerging-markets equities posted the second-strongest gain for last week: Vanguard FTSE Emerging Markets (VWO) jumped 1.2%.

Fixed-income markets were broadly lower last week. The biggest loser: foreign inflation-linked bonds. SPDR Citi International Government Inflation-Protected Bond (WIP) fell 1.6%, reversing most of the previous week’s 2.0% surge.

For the one-year trend, all the major asset classes are currently posting gains, although there’s still a wide range of results.

Stocks in emerging markets continue to hold the lead position for the trailing 12-month change. VWO’s total return is currently 23.2% through Friday’s close, modestly ahead of the number-two performer for the trailing one-year change – foreign stocks in developed markets via Vanguard FTSE Developed Markets (VEA), which is up 20.5% as of Sep. 15.

Wallowing in last place for one-year results with a fractional gain: foreign government bonds. SPDR Bloomberg Barclays International Treasury Bond (BWX) is ahead by a thin 0.3% vs. the year-earlier level.