General Market Commentary as of September 30, 2021
The third quarter showed mixed results with the S&P 500 hitting a new all-time high in July and later in September suffering its first 5% pullback in nearly a year. The S&P 500 ended the quarter up 0.23%, the Dow Jones Industrial Average was off -1.91%, and the Nasdaq Composite finished down -0.38%. On the fixed income side most bond classes saw little change from where the quarter started. Internationally, foreign markets declined in the third quarter. Emerging markets dropped on concerns of a global recovery, in addition to growth worries in China stemming from the Evergrande debt issues.
Sectors showed mixed results for the quarter with financials leading the way and industrials and materials lagging. Large-cap stocks outperformed small-cap stocks as economic data was mixed and the outlook for future economic growth became less certain. Growth outperformed value aided by gains in the technology sector. Commodities posted another strong quarter led by the rally in oil prices. Supply chain constraints and margin compression coming from multiple industries has tempered the outlook on corporate earnings.
The Federal Reserve indicated it will begin to taper Quantitative Easing in Q4. However, when exactly they will start to scale back asset purchases or the pace at which they will remains unknown. In Washington, besides the Fed, another focus is on whether the debt ceiling will be extended and if there will be any significant tax increases to follow. Policymakers continue to revise regulations regarding COVID-19 at both the federal and state level. The number of COVID-19 cases continues to be a challenge for businesses seeking employees as they attempt to properly meet fluctuating consumer demands.
Market Recap
| Tot Return | 3-MO* | 12-MO* | 3-Year* | 5-Year* | Closing Value |
|---|---|---|---|---|---|
| S&P 500 | 0.23% | 28.09% | 13.92% | 14.72% | 4,307.54 |
| Dow Jones Industrial Average | -1.91% | 21.82% | 8.55% | 13.08% | 33,843.92 |
| NASDAQ Composite | -0.38% | 29.38% | 21.55% | 22.16% | 14,448.58 |
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.
