Week ending June 22: Markets lose significant ground.
Markets lost significant ground last week, in what has proved to be a volatile month thus far. The Morningstar US Market Index lost 1.9% for the week ending June 22. Long-term bond yields neared their recent highs, renewing investors' concern about equity valuations. The high cost of borrowing also sparked worries that financial services companies face additional losses from soaring debt in subprime mortgage and other areas. Merger and acquisition activity continued to be a bright spot in the market, however.
All nine Morningstar style indexes finished in the red, with more moderate losses for mid-cap and growth stocks. The Morningstar Mid Growth Index fared the best among all style indexes with a 1.2% loss. The Morningstar Large Value Index's 2.8% loss was the worst.
The Morningstar Mid Growth Index got strong support from investment manager Nuveen Investments
Interest rate-sensitive sectors such as financial services and utilities were among the Morningstar Large Value Index's worst detractors. Prominent contributors included Citigroup