Market Commentary 09/28/23

Last week, the S&P 500 index closed at its lowest level of the current quarter with a decline for the week of nearly 3%. The same index has fallen nearly 6% since its highest close of the year on July 31.

What is behind the multi-week decline?

If we step back and look at the year overall, investor sentiment has largely remained upbeat. Financial markets have rebounded from their 2022 sell-off, with the S&P 500 gaining more than 14% (inclusive of the most recent decline) and credit spreads have tightened.

The U.S. consumer continues to be supported by low unemployment and wage growth, and while data shows the rate of economic activity is slowing, it remains positive despite the rate hiking cycle. GDP growth has exceeded expectations, housing activity is rebounding despite elevated mortgage rates, and the industrial sector remains resilient as the government invests in infrastructure upgrades, renewable energy, and semiconductor production.

So, what has changed?

Important Disclosures: The report herein is not a complete analysis of every material fact in respect to any company, industry or security. The opinions expressed here reflect the judgment of the author as of the date of the report and are subject to change without notice. Any market prices are only indications of market values and are subject to change. The information contained herein is based on technical and/or fundamental market analysis and may be based on data obtained from recognizable statistical services, issuer reports or communications or other sources believed to be reliable. However, such information has not been verified by us, and we do not make any representations as to its accuracy or completeness. The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Index returns are not fund returns. An index is unmanaged and not available for direct investment. Past performance is no guarantee of future results. Yields are given as of 8/2/2023.Bonds are subject to price and availability.

The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market value weighted index with each stock’s weight in the Index proportionate to its market value.

Additional information is available upon request. PM-03262025-5976307.1.1

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