Global stocks and bond indices finished the month close to record levels as the Federal Reserve lowered interest rates by a half percentage point – its first reduction since 2020. Here are 3 things you need to know:
- The S&P 500 has now posted its strongest year-to-date performance of the 21st century so far (+20.8%), after rising 5.36% for the third quarter.
- Chinese equity markets rocketed higher (+18.8% in September) after Beijing’s announcement of a $114 billion stimulus package to support the economy.
- Gold posted its strongest quarter (+13.2%) since Q1 2016 as markets priced in faster rate cuts.
Sources: J.P. Morgan Asset Management – Economic Update; Bureau of Economic Analysis (www.bea.gov); Bureau of Labor Statistics (www.bls.gov); Federal Open Market Committee (www.federalreserve.gov); Bloomberg; FactSet.
Indices:
- The Bloomberg Barclays Aggregate Bond Index is a broad-based index used as a proxy for the U.S. bond market. Total return quoted.
- The S&P 500 is designed to be a leading indicator of U.S. equities and is commonly used as a proxy for the U.S. stock market. Price return quoted.
- The Russell 2000 Index is a small-cap U.S. stock market index that makes up the smallest 2,000 stocks in the Russell Index.
- The MSCI ACWI ex-US Index captures large and mid-cap representation across 22 of 23 developed market countries (excluding the U.S.) and 27 emerging market countries. The index covers approximately 85% of the global equity opportunity set outside the U.S. Price return quoted.
- The MSCI Emerging Markets Index captures large and mid-cap segments in 26 emerging markets. Price return quoted (USD).
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