Weekly Snapshot September 28th, 2021
Market Review: Week Ending 9/24/2021
Volatility was the dominant theme last week with the CBOE Volatility Index jumping to its highest level in four months. Monday’s 5% drop was the single, biggest daily S&P 500 Index (S&P500) loss since last May before rebounding.1 For the week, the Dow Jones Industrial Average (DJIA) rose +0.62%. The S&P500 increased +0.51% and the Russell 2000 Index (R2000) advanced +0.50%. Trailing the other major indexes, the NASDAQ Composite (NASDAQ) was basically flat +0.02%.2 Within S&P 500 sectors, outperformers for the week were Energy +4.70%, Financials +2.21% and Technology +0.95% while sector underperformers were REITs -1.58%, Utilities -1.20%, and Communication Services -0.72%.3 Volatility in the equity markets allowed the Russell 1000 Value Index (+0.67%) to outperform the Russell 1000 Growth Index (+0.31%) for a second week in a row.4
The Federal Reserve’s two-day policy meeting concluded Wednesday and as was widely expected, policymakers announced that they could start tapering (trimming its bond purchases) as soon as early November. In addition, the Federal Open Market Committee’s updated Summary of Economic Projections, stated the timing of an interest rate liftoff is now evenly split between 2022 and 2023.
While the S&P 500 is less than 2% off its record high and was down 5% at its worst last Monday, the average stock in the index had declined even more. The performance difference between the major indexes and their corresponding average stock can be seen throughout the equity spectrum:5
Maximum Decline from 52-week Highs on 9/20/2021
S&P500 Index -5% Average Stock -14% U.S Small Caps (Russell 2000) -9% Average Stock -31% International Developed (MSCI EAFE) -5% Average Stock -15% Emerging Markets (MSCI EM) -15% Average Stock -26%
WHAT WE WILL BE WATCHING THIS WEEK
Various economic reports on the health and direction of the economy:
- Consumer Confidence Index – The Conference Board
- Unemployment Claims – U.S. Department of Labor
- University of Michigan Index of Consumer Sentiment
- Institute for Supply Management – Manufacturing Index
- 2nd Quarter GDP / 3rd Estimate – U.S. Bureau of Economic Analysis
As always, we appreciate your confidence in our team.
Fundamentum Investment Committee
John Nichol, CFA® – Chief Investment Officer
Trevor Forbes – Investment Committee
Robert Armagno – Investment Committee
1 John Hancock Weekly Market Recap – 09/24/2021
2 FactSet – 9/24/2021
3 FactSet – 9/24/2021
4 JPMorgan Weekly Market Recap – 9/27/2021
5 Edward Jones Weekly Market Wrap – 9/24/21
Past performance is no guarantee of future results.
Investment advice offered through Fundamentum LLC a registered investment advisor. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. There is no assurance that the investment objective of any investment strategy will be attained. Investing involves risk including loss of principal. Past performance is no guarantee of future performance. All indices are unmanaged and may not be invested into directly.