2016 Financial Market Highlights
The year 2016 saw major central bank actions and asset class shifts. The U.S. Federal Reserve raised its benchmark rate once in December, marking the second increase in a decade, while the European Central Bank expanded its asset purchase program in March source. Global equity markets started the year with a sharp selloff driven by China's manufacturing slowdown, then rallied as oil prices stabilized and U.S. corporate earnings improved source.
U.S. Treasury yields moved sharply lower before rising later in the year, reflecting changing expectations for growth and inflation. The 10-year yield fell below 2.0% in the summer before climbing back above 2.4% by year-end. Bond market volatility remained elevated, and investment-grade corporate spreads widened in the first quarter before tightening as risk appetite returned source.
2016 Fun Fact: Corporate and Tech Milestones
Major technology companies posted record valuations and user growth during 2016. Facebook reported more than 1.7 billion monthly active users in Q4, and Alphabet generated over 77 billion U.S. dollars in annual revenue for the first time source. Amazon's cloud computing division, AWS, grew revenue by more than 60 percent year-over-year, reinforcing its position as the dominant public cloud provider source.
Electric vehicle maker Tesla delivered just over 76,000 vehicles in 2016, a sharp increase from 50,580 units in 2015, as the Model S and Model X drove higher margins source. SpaceX completed its first cargo resupply mission to the International Space Station using a Falcon 9 rocket with a previously flown booster, marking a milestone in reusable launch technology source.
2016 Fun Fact: Global Economic and Political Turning Points
Major policy shifts and geopolitical events shaped the global economic outlook in 2016. The United Kingdom voted to leave the European Union in June, triggering a sharp drop in the British pound and a temporary selloff in global equities. The U.S. presidential election in November