September finally ends - Creand
Skip to content

September finally ends

September is historically the worse month of the year for the S&P 500 and it did not disappoint.  It was a tough month for the market and investors are glad to leave September behind. 

In the last week of September, there was a rebound attempt that left the Nasdaq and Russell 2000 with slim gains while the Dow Jones and S&P 500 declined 1.3% and 0.7%, respectively.  Of course, these results do not reflect any impact from the US Congress approving temporary funding on Saturday to avoid a government shutdown.   

The yield on the 10-yr US Treasury jumped 13 basis points last week for a total of 48 basis points this month, to 4.57%.  The rate-sensitive S&P 500 utilities sector saw the largest decline this week by a wide margin, falling 7.0%. The next worst performer was the consumer staples sector (-2.1%). Only the energy (+1.3%) and materials (+0.2%) sectors registered gains last week.  The energy sector was driven by the price of WTI crude oil jumping by more than $7.00 per barrel this month, settling Friday’s session at $90.78 per barrel.  This has stoked concerns over inflation, and that rising gas prices could spark a slowdown in consumer spending.

Investors received some economic data last week, including a weaker than expected August new home sales report, a low level of weekly jobless claims, and some better than expected inflation data in the form of the core-PCE Price Index for August.  On a year-over-year basis, the headline PCE Price Index was up 3.5% versus an upwardly revised 3.4% in July (from 3.3%). However, the core PCE Price Index decelerated to 3.9% yr/yr from an upwardly revised 4.3% (from 4.2%) in July.