Investment Review - September 2024
- US equity indices recovered after stumbling early in the month. The S&P 500 rose 2.3%, the Nasdaq Composite gained 0.7%, and the Dow Jones Industrial Average appreciated 1.8%.
- The Bank of Japan’s (BOJ) hawkish stance triggered a multi-day sell-off in US markets as popular trades were unwound. Known as the carry trade, investors borrowed low-yielding yen to invest in higher-yielding assets, including US equities. The strategy worked until the BOJ raised its key interest rate to 0.25% from near-zero and signaled a propensity to raise rates again.
- The S&P 500 index declined 8.5% from peak-to-trough spanning July 16 to August 5. The decline compares to the average intra-year drop of 14.2%. Corrections are common and normal aspects of market behavior. Despite these corrections, markets have ended the year in positive territory 33 of 44 years dating back to 1980.
Key Investment Statistics
Sources: FactSet, Dow Jones Publishing, Bloomberg, Standard & Poor’s, JP Morgan Asset Management, US Department of Labor, National Federation of Independent Businesses, National Association of Realtors, National Association of Home Builders, US Federal Reserve, Yardeni Research
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