Week ending June 15: Markets rebound impressively.
Markets rebounded impressively last week after suffering sharp losses the week before. The Morningstar US Market Index gained 1.7% for the week ending June 15. The sharp spike in long-term interest rates was the chief cause of the equities slide earlier and also played the lead role in last week's recovery. Long-term yields stabilized, both due to the return of bargain-hunting bond investors as well as a benign inflation report for the month of May. Markets also cheered signs of continued merger and acquisition activity, despite earlier fears that the recent escalation in interest
rates could threaten deals.
The Morningstar Mid Growth Index was the best performer among all nine style indexes with a 2.6% gain. The Morningstar Small Value Index's 1.16% advance was the slimmest.
Oil prices rose last week, benefiting energy services stocks the most. Drilling equipment supplier National Oilwell Varco