Q3 Market Review

  • U.S. equity markets advanced 7.1% (Russell 3000) on solid earnings, economic growth and a tightening labor market.
  • With continuing trade tensions, international equities increased at a slower pace than domestic equities, posting a 0.7% gain over the quarter (MSCI ACWI ex U.S.).
  • The U.S. fixed income market was flat for the quarter (Bloomberg Barclays Aggregate) as interest rates increased modestly. Additionally, the yield curve continued to flatten during the quarter.
  • U.S. unemployment fell to 3.7% in September, which marked the lowest level since 1969. The number of job openings now exceeds the number of unemployed.
  • GDP growth accelerated in the second quarter to 4.2%, the fastest pace in nearly four years.
  • Growth continued to outperform value this quarter with the Russell 1000 Growth outperforming the Russell 1000 Value by 3.5%.
  • The Federal Reserve raised interest rates in September for the third time this year and signaled the likelihood of none more rate hike in 2018.