All the three key U.S. indexes registered their third straight weekly rise last week, following fresh hints of additional stimulus measures by Bank of England (BOE) and Bank of Japan (BOJ). Also, the two largest domestic banks, JPMorgan Chase & Co. (JPMÂ -Â Analyst Report) and Bank of America Corporation (BACÂ -Â Analyst Report) posted better-than-expected earnings results which had a positive impact on the benchmarks. Moreover, recent economic data including the June job data and retail sales report were upbeat. The Dow increased 2% for the week while both the S&P 500 and the Nasdaq posted weekly gains of 1.5%.
Following this rally, addition of mid-cap growth mutual funds to one’s portfolio might be one of the most suitable investment options. Investors may opt to buy mid-cap growth funds as these normally offer better returns than large-cap funds and have comparatively lower volatility than their small-cap counterparts. But before we delve deeper into the funds, let’s take a detailed look into what drove the upside.
BOE and BOJ Hint at Easing Monetary Policies
Bank of England (BOE) surprised the markets by keeping its rate unchanged at 0.5% on July 14. However, BOE hinted at introducing fresh economic stimulus measures next month. In a statement, BOE said that most of the members of its Monetary Policy Committee “expect monetary policy to be loosened in August.â€
Additionally, following his party’s victory in Japan’s upper house election on July 10, Prime Minister Shinzo Abe is expected to come up with additional economic stimulus measures. Abe asked his economy minister Nobuteru Ishihara to provide details of economic stimulus measures by the end of this month to improve the country’s economy.
Major Banks Post Favorable Earnings Reports
JPMorgan Chase reported second-quarter earnings of $1.55 per share, which surpassed the Zacks Consensus Estimate of $1.43. Managed net revenue of $25.2 billion in the quarter also beat the Zacks Consensus Estimate of $24.06 billion.
