- Mounting fears of inflation, an ongoing Congressional budget impasse, and anticipation of a reduction in Fed liquidity provision all weighed on U.S. equities in September. For the third quarter as a whole, the S&P 500® posted a gain of 1%, while mid and small-caps declined, as the S&P MidCap 400® and the S&P SmallCap 600® fell 2% and 3%, respectively. Volatility rose, as the VIX® closed at 23.14.
- Momentum and Growth led in Q3, while High Beta (unsurprisingly) and some yield-focused factors were among the weakest performers.
- Most sectors posted gains, with Financials in the lead, up 3%. Energy made a dramatic turnaround in September, rising 9% for the month and substantially diminishing its quarterly loss.
September 2021 Analysis