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Perspectives Newsletter: Q3, 2024
With a return of 2.14% in September, the S&P 500 recorded its strongest nine month start to a year since 1997. The September gain is even more noteworthy considering the month began with a decline of -4.25% over the first four trading days, leaving investors to wonder if September would live up to its well-earned reputation of poor returns. Following that four-day decline, the S&P would go on a nearly uninterrupted run higher through month end, advancing 6.55%. The initial move higher was driven by relatively tame inflation numbers, giving investors hope that the Fed would finally join the rate cutting party that had begun in much of the rest of the world. That hope became reality on the 18th, with the Fed cutting its rate by a half percentage point and communicating more could come. While the S&P 500 had a strong return, it was a relative laggard for the quarter. Domestically, value stocks bested growth by over 6 percentage points to help close the year-to-date performance gap. Internationally, emerging markets enjoyed an incredibly strong September to take the leadership edge. The month’s gains were driven by China, where policymakers unleashed the stimulus investors have been clamoring for.
