--- title: Weekly Investment Update October 18, 2021 description: Equity markets surged higher last week as earnings season got off to a great start. image: https://investments.oneascent.com/hubfs/weekly-investment-update-header.jpeg --- # Weekly Investment Update October 18, 2021 October 18, 2021 •[OneAscent](https://investments.oneascent.com/blog/author/oneascent) ** [Weekly Investment Updates](https://investments.oneascent.com/blog/tag/weekly-investment-updates) ![](https://investments.oneascent.com/hs-fs/hubfs/weekly-investment-update-header.jpeg?height=630&name=weekly-investment-update-header.jpeg) Equity markets surged higher last week as earnings season got off to a great start. Several large banks reported strong earnings, which helped push equity markets higher. Goldman Sachs reported that their year-to-date revenue in 2021 is already the highest annual revenue recorded in firm history, and there is still a quarter of the year left[[1]](https://investments.oneascent.com/blog/weekly-investment-update-october-18-2021#_ftn1). The S&P 500 (a proxy for large-cap US stocks) was up 1.8% for the week and the MSCI ACWI index (a proxy for global large-cap stocks) jumped 2.2%[[2]](https://investments.oneascent.com/blog/weekly-investment-update-october-18-2021#_ftn2). An important footnote to the strong bank earnings reports last week was the broad agreement by bank leadership that inflation, and wage inflation in particular, remains a concern. Goldman Sachs CEO David Solomon commented, “there’s real wage inflation across all aspects of the economy right now"[[3]](https://investments.oneascent.com/blog/weekly-investment-update-october-18-2021#_ftn3). As one can see below, the US Consumer Price Index, a commonly used gauge of inflation, has risen to levels not seen in more than a decade. The Federal Reserve’s stance that inflation will be short-lived is being called into question more often recently, especially in areas like wage inflation. ![Line graph depicting US Consumer Price Index Y0Y and 10 Year Treasury Rate from 2021 to 2021](https://investments.oneascent.com/hubfs/US-Consumer-Price-Index-YoY-10-Year-Treasury-Rate-OneAscent-October-18-2021-Weekly-Investment-Update.png) Prices & Interest Rates | Representative Index | Current | Year-End 2020 | | --- | --- | --- | | Crude Oil (US WTI) | $82.00 | $48.52 | | Gold | $1,767 | $1,893 | | US Dollar | 93.95 | 89.94 | | 2 Year Treasury | 0.41% | 0.13% | | 10 Year Treasury | 1.59% | 0.93% | | 30 Year Treasury | 2.05% | 1.65% | | *Source: Morningstar, YCharts, and US Treasury as of October 16, 2021* | | |   Asset Class Returns | Category | Representative Index | YTD 2021 | Full Year 2020 | | --- | --- | --- | --- | | Global Equity | MSCI All-Country World | 14.8% | 16.3% | | Global Equity | MSCI All-Country World ESG Leaders | 16.4% | 16.0% | | US Large Cap Equity  | S&P 500  | 20.4% | 18.4% | | US Large Cap Equity  | Dow Jones Industrial Average | 17.0% | 9.7% | | US Small Cap Equity  | Russell 2000 | 15.6% | 20.0% | | Foreign Developed Equity | MSCI EAFE | 10.4% | 7.8% | | Emerging Market Equity | MSCI Emerging Markets | 1.2% | 18.3% | | US Fixed Income | Bloomberg Barclays Municipal Bond | 0.7% | 5.2% | | US Fixed Income | Bloomberg Barclays US Agg Bond | -1.7% | 7.5% | | Global Fixed Income | Bloomberg Barclays Global Agg. Bond | -4.2% | 9.2% | | *Source: YCharts as of October 16, 2021* | | | |   [[1]](https://investments.oneascent.com/blog/weekly-investment-update-october-18-2021#_ftnref1) Source: [Goldman Traders Deliver Surprise Surge in Firm’s Best Year - Bloomberg](https://www.bloomberg.com/news/articles/2021-10-15/goldman-traders-deliver-surprise-surge-in-firm-s-best-year-ever) [[2]](https://investments.oneascent.com/blog/weekly-investment-update-october-18-2021#_ftnref2) Source: YCharts [[3]](https://investments.oneascent.com/blog/weekly-investment-update-october-18-2021#_ftnref3) Source: [Wage Inflation Is Spreading Through the Economy, Goldman Sachs CEO Says - Bloomberg](https://www.bloomberg.com/news/articles/2021-10-15/goldman-s-ceo-says-wage-inflation-is-spreading-through-economy)   [**Download PDF Version** ](https://investments.oneascent.com/hubfs/2021.10.18%20OneAscent%20Weekly%20Investment%20Update.pdf)   Past performance may not be representative of future results.  All investments are subject to loss.  Forecasts regarding the market or economy are subject to a wide range of possible outcomes.  The views presented in this market update may prove to be inaccurate for a variety of factors.  These views are as of the date listed above and are subject to change based on changes in fundamental economic or market-related data.  Please contact your Financial Advisor in order to complete an updated risk assessment to ensure that your investment allocation is appropriate. 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