Markets moved higher across the board, as the S&P 500 posted its best September month in 15 years, gaining 3.7%. In what has historically been the worst month for stocks, every major index posted gains, led by emerging markets, which increased by 7.2%. September’s broad-based gains reflect improved investor confidence, as the Fed cut interest rates for the first time this year.

Sector performance was split in September, with Technology leading the way, bouncing back from a negative August, advancing over 7.5%. Consumer Staples, Materials, and Energy all went negative, with Financials virtually flat at 0.1% in September.

The U.S. labor market continued to weaken as the Unemployment Rate ticked up to 4.2% and Labor Force Participation declined for the fourth straight month. Just 73,000 jobs were added in July, missing expectations for the third month running. The Median Sales Price of Existing Homes fell 2.38%, marking the first monthly decline since January. The Fed Funds Rate remained unchanged, but a dovish tone from Fed Chair Powell at Jackson Hole increased speculation that rate cuts could arrive as soon as September.

Treasury yields declined across the ends of the curve in September, though the 2-year, 3-year, and 5-year all increased slightly. One of the most significant drops came from the 30-year, down 19 basis points to 4.73%, reflecting market expectations of slower growth and easier policy conditions after the Fed lowered its target range.

Continue reading: https://get.ycharts.com/resources/blog/monthly-market-wrap/ 

Cerro Pacific Wealth Advisors LLC is a Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where Cerro Pacific Wealth Advisors LLC and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Cerro Pacific Wealth Advisors LLC unless a client service agreement is in place.