Last Week In ReviewLast week stocks were higher but offered widely divergent returns for the week as investors reacted to a busy calendar of third-quarter earnings reports. Energy and other industrial economy stocks handily outperformed growth shares, with the latter...
For many of us, money is a taboo subject within the family. But financial conversations can also be important and even necessary. What do existing estate plans look like? Do older generations intend to contribute to grandkids’ college or wedding bills or give everything to charity? Do family elders have enough to support themselves without family assistance? Do we need to add “financial support to parents” to our own financial plan?
Last week equities recorded substantial gains as investors appeared to react to some prominent earnings reports and hints that the Federal Reserve might moderate its pace of interest rate hikes. The S&P 500 Index enjoyed its best weekly gain in nearly four months, while the Dow Jones Industrial Average marked its third consecutive week of gains. Energy shares outperformed within the S&P 500 as oil prices proved resilient despite announcing a U.S. Strategic Petroleum Reserve release. The small real estate sector lagged. Trading remained active and volatile due to the expiration of USD 2 trillion in options contracts on Friday.
Last week, most major indexes were lower as third-quarter earnings reporting season began in earnest, and investors weighed inflation data and their implications for Federal Reserve policy. By the end of the week, the S&P 500 Index had surrendered nearly half of its gains since its March 2020 bottom. Within the index, the typically defensive healthcare and consumer staples sectors outperformed. In contrast, consumer discretionary and communication services shares lagged, dragged lower by heavily weighted Amazon.com, Tesla, and Meta Platforms (parent of Facebook). Likewise, slower-growing value stocks handily outperformed their growth counterparts.
Last week stocks ended higher for the first time in four weeks. Still, they surrendered most of their gains, as some data suggested that the economy was not slowing enough to satisfy Federal Reserve policymakers. The energy sector was the standout performer in the S&P 500 Index as oil prices surged following a decision by major exporters to cut global production. Volumes were muted as investors awaited the start of the earnings season, and some observed the Yom Kippur holiday.
• Global Equities fell 9.34% in September in their worst month since the Coronavirus pandemic shook global markets in March 2020 and worst September return since the 2008 global financial crisis. The MSCI All Country World Index sank to a new 2022 low, dropping 6.82% in Q3, marking the first time the global index posted three consecutive quarterly losses since 2009. Year-to-date the index is down 25.63% in its worst nine-month start since its inception in 2001.
Last week was another choppy week as turmoil in UK financial markets and signs that the Federal Reserve still has some way to go in its efforts to temper inflation sent stocks to their third consecutive weekly decline. At the same time, the yield on the benchmark 10-year US Treasury note briefly breached 4% for the first time since 2008. The S&P 500 Index broke below its mid-June lows and fell back to November 2020 levels. The week closed out a third consecutive quarter of declines for the index for the first time since 2009.