June 2020 - Chart of the Month

In line with this month’s market commentary, following the depths of the market’s sell-off in March, major indices across the world are telling disparate stories. A positive (although relative) job’s report for May and belief in the resilience of technology has set the NASDAQ to new heights and buoyed the S&P 500 to near even on the year. While we call can vividly describe the expanded use of technology under “stay-at-home” conditions, one has to wonder how well these gains can survive if other major areas of the economy remained depressed. Major components of the NASDAQ; Apple, Microsoft and Google rely considerably on consumer and business spending to support product sales and advertising spend. Prolonged depressed business conditions suggest a meaningful portion of their demand could be hampered for the remainder of the year, questioning how well such a rally can last.