In the recent LPL Market Signals video, LPL Financial Chief Market Strategist Ryan Detrick and Equity Strategist Jeff Buchbinder discussed recent market volatility, the president contracting COVID-19, and more, including:

• COVID-19 in the White House

• The latest on stimulus

• Big bounce for stocks last quarter

• Fourth quarter outlook

• Why Ryan looks like Patrick Mahomes

• Jobs wobble and the economy

You can watch the full discussion below and directly from our YouTube channel. Please be sure to subscribe to the LPL Research YouTube channel so you don’t miss anything! Also, if you li

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Stocks fared well during the third quarter despite September’s weakness, with the S&P 500 Index returning about 9%. The quarterly gain brought the return through the first nine months of the year to 5.6%. Here we peel back the onion on the third quarter’s stock performance to look at what worked and what didn’t.

 

Growth beat value for the quarter despite losing ground in September. The growth style of investing continued its impressive 2020 run during the quarter, shown in the LPL Chart of the Day, but underperformed during September as markets pulled back and rotated some from the winners to the laggards. Va

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The third quarter was characterized by the carry-over of economic momentum from the second quarter, as states continued to lift restrictions to reopen their economies. Perhaps it was no surprise that some of the hardest hit and most economically sensitive areas of the fixed income market benefited.

 

As shown in the LPL Chart of the Day, the sectors of the fixed income market widely considered to be “risk on” outperformed, such as high yield, bank loans, and emerging market debt:

 

 

Further, these sectors typically carry lower interest-rate sensitivity than other segments of the fixed income univ

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Index Performance

 

 

 

 

 

 

US and International Equities

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The S&P 500 Index gave back some gains in September after a strong five-month run, with most sectors finishing in the red. The utilities and materials sectors were the exceptions, both gaining for the month.

The sectors with the largest pullbacks this past month were energy, communication services, information technology, and consumer discretionary. Given the challenges with the technology sector, large growth underperformed large value. In addition, mid and small cap equities also lost ground this month.

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