From Equity Research
The New Year ushered in continuing uncertainties for equity markets as the COVID-19 pandemic weighs on consumers both in the U.S. and abroad. During January, equity market performance was mixed with smaller caps generally outperforming large cap stocks. Reflecting a notable shift, the VIX Index or “Fear Gauge” which had been tracking in the low 20 range spiked to over 37 near month end as investors reacted to unusual social media driven stock price behavior. For the full month, the Dow Jones Industrial Average dropped 2.0%, the S&P 500® index dropped 1.1%, and the smaller cap weighted Russell 2000® increased 5.0%.