The S&P 500 Total Return Index showed a positive return of 3.65% for September, indicating overall strength in the U.S. equity market. Global stocks also performed well. Large-cap growth stocks outperformed other styles. The technology sector, represented by the NASDAQ 100 Stock Index, showed strong performance with a 5.51% return. The healthcare sector, particularly biotech, demonstrated significant strength. The materials sector underperformed. Municipal bonds were the top performers in the bond category while Treasury Bonds underperformed relative to other bonds.
The U.S. government shutdown is a significant factor that could influence market dynamics, potentially leading to increased volatility and a shift towards defensive sectors.
There’s a noticeable trend of investors seeking defensive sectors during periods of uncertainty, as evidenced by the strong performance in healthcare and utilities. The technology sector continues to show resilience, with companies announcing innovative AI-driven platforms. International markets, particularly in Asia and emerging markets, showed strong performance, indicating potential opportunities for diversification.
