Despite lingering inflation concerns, U.S. equities recovered strongly in October, thanks to robust corporate earnings. The S&P 500® posted a gain of 7%, outperforming mid- and small-caps, as the S&P MidCap 400® and the S&P SmallCap 600® rose 6% and 3%, respectively. Volatility declined, as the VIX® closed at 16.26.
All factors posted gains, with Growth and High Beta in the lead. Unsurprisingly, defensive factors trailed in October.
All sectors posted gains. Consumer Discretionary led, followed by Energy, which continued its dramatic turnaround, up 58% year-to-date.
