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Second Quarter in U.S.-Stock Funds: The Winners and Losers

The Brexit made waves.

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After a volatile first quarter, U.S. stocks steadily rose for most of 2016's second quarter until Friday, when stocks were hammered across the globe after Britain unexpectedly voted to leave the European Union. This knocked the S&P 500 into negative territory for the quarter to date through June 24, though the Russell 2000 Index is still up 1.5%. The Federal Reserve shelved plans to raise short-term interest rates at its mid-June meeting amid the Brexit vote and the May jobs report that indicated U.S. employers added just 38,000 jobs--the worst month since 2010.

Brent crude prices temporarily climbed above $50 per barrel for the first time since November 2015, and prices are currently up 22% for the quarter to date. As a result, the equity energy Morningstar Category posted a gain of 9.4%. Waddell & Reed Energy (WEGAX) has outperformed 88% of its equity energy peers this quarter thanks to its large holdings in  Continental Resources (CLR) and  Halliburton (HAL). The equity precious-metals category has also benefited from higher commodity prices, climbing more than 33% during the quarter. Oppenheimer Gold & Special Minerals (OPGSX) has outperformed 75% of its equity precious-metals peers this quarter because of its sizable positions in  Newmont Mining (NEM) and Royal Gold (RGLD).

Andrew Daniels has a position in the following securities mentioned above: MSFT, AAPL. Find out about Morningstar’s editorial policies.

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