Social media stocks took a major dive this week with Facebook losing $119 billion in market cap Thursday – the largest single day market value wipeout in history; Twitter followed suit with a similar ~20% decline. Both companies disappointed on user data and lowered guidance going forward. The tech decline for the week was paired with strong domestic GDP growth being reported for the second quarter 2018. The economy grew at the fastest pace in nearly four years; the Commerce Department indicated the value of all goods and services produced grew at a seasonally and inflation adjusted annual rate of 4.1%.
Although one of the darling FANG stocks experienced a massive decline, broadly large cap U.S. equities still advanced for the week measured by the S&P 500. Small company stocks declined a fair amount giving back some of its recent heavy gains but still remains the top performer YTD. International developed and emerging markets continued a steady climb higher despite resistant dollar strength. Core fixed income investments declined on a roughly parallel increase in yields over the past week and month; however, floating rate and credit investments have advanced.
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