- U.S. equity markets finished higher for the first time in four weeks. That said, weakness late in the week handed back much of the rally sustained earlier in the week.
- Recent equity market performance has been heavily impacted by anticipated (and realized) central bank action. The rally earlier in the week reflected some downside surprises in data (bad news is good news) which could add to the argument for the Fed to not hike as aggressively going forward. An encouraging jobs market report later in the week (good news is bad news) almost fully reversed the rally.
- Despite substantial volatility, volumes were somewhat muted as investors awaited the third quarter earnings season and due to the observance of Yom Kippur.
- Within the S&P 500 Index, the energy sector was a standout performer – rising nearly 14%. This added to a 50%+ gain for the sector year-to-date. Interest rate-sensitive sectors, such as real estate and utilities, were notable laggards and ended up down for the week reflecting higher bond yields.
