ACG’s September Capital Markets Review
- September was the worst month for equity markets of the year so far, as higher rates weighed on risk assets.
- The S&P 500 was down -4.77% for the month but remains up +13.07% year to date.
- Energy (+2.63%) was the lone sector in the S&P 500 to show positive performance in September, while Real Estate (-7.25%) and Technology (-6.87%) led detractors for the month.
- Value stocks enjoyed a small advantage over Growth with the Russell 1000 Value falling -3.86% compared to -5.44% for the Russell 1000 Growth in September.
- The MSCI EAFE Index was down -3.42% in September while the MSCI Emerging Markets Index fell -2.62%, attributable to some continued weakness from China but positive performance in India and Brazil.
- The 10-year Treasury yield rose again from 4.11% to 4.57% during the month resulting in a -2.54% drop for the Bloomberg Aggregate U.S. Bond Index in August. Fed messaging that further rate hikes and a higher neutral rate may be necessary has provided upward pressure on yields and downward pressure on bond prices.
Sources: Morningstar Direct, MSCI
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