General Market Commentary as of September 30, 2020
Following the record setting performance in Q2, U.S. markets continued upward as a whole notching solid returns again in the third quarter. The S&P 500 finished the quarter up 8.47%, the Dow Jones Industrial Average was up 7.63%, and the Nasdaq Composite finished up 11.02%. Changes in interest rates were mixed in the U.S. Treasury fixed income market. Yield on the 5-year note decreased ending at 0.31% while both the 10-year and 30-year note increased, ending at 0.64% and 1.46%, respectively. Government bond interest rates across the globe were also mixed.
The latest stimulus package has stalled and it seems more likely that a deal will not take place until after the election. Employment numbers continue to trend in a positive direction as companies and industries are forced to adapt. Weaker sectors of the economy, such as services and energy, are slow in their recovery. Stronger parts of the economy, such as durables and technology, are providing heavy lifting, some surpassing pandemic-driven economic losses, leading to GDP forecasts that are closing in on pre-pandemic levels.
Many are feeling the cyclical angst that comes around every four years heading into our presidential election. Add in COVID-19 to the mix this time around and we have a recipe ripe for widespread market speculation. If this year has taught us anything, as suggested in previous commentary, with all the uncertainty, one thing we can count on is our healthcare system to respond to whatever challenges it faces. It will likely be a bumpy and volatile ride the next month or so, but past the daily headlines there is promise as the markets remain resilient as we look forward to the year ahead.
Market Recap
| Tot Return | 3-MO* | 12-MO* | 3-Year* | 5-Year* | Closing Value |
|---|---|---|---|---|---|
| S&P 500 | 8.47% | 12.98% | 10.11% | 11.86% | 3,363.00 |
| Dow Jones Industrial Average | 7.63% | 3.21% | 7.43% | 11.27% | 27,781.70 |
| NASDAQ Composite | 11.02% | 39.61% | 19.79% | 19.31% | 11,167.51 |
Source: Morningstar. The S&P 500, Dow Jones Industrial Average, and NASDAQ Composite are unmanaged indexes. It is not possible to invest in an index. Past performance is no guarantee of future results. * Price only. Does not include dividends.
All overviews and commentary are intended to be general in nature and for current interest, educational purposes and factual reference only and are subject to change based on market and other conditions.
