The CRB Index Shows Signs of Breaking Out and Deserves Attention

Commodity prices are rising, with food costs near two-year highs

Highlights

• Commodity prices are rising, with food costs near two-year highs

• The dollar’s decline has wiped out gains for international investors in the U.S.

• The domestically-focused parts of the U.S. equity market are still down for the year

• Market reactions to tariffs have become radically different

Key Takeaways

• Record Highs for Equities Mask Faltering Smaller Caps: Yesterday’s action was a little messy. While the S&P 500 and Nasdaq both logged new highs — the tenth record close for the year for the S&P 500 — the Dow reversed lower while both the S&P 400 midcaps and S&P 600 small caps faltered into the close. The more defensive and rate-sensitive Communication Services and Utilities sectors outperformed.