Markets were negative almost everywhere you looked in September. The Nasdaq was the lone positive index, up 1.9%, while the Russell 2000 fell 5.25%. Similarly, Technology was the only positive sector, up 5.1%, while Financial and Materials both fell by over 7%. Energy, which leads over the trailing twelve months up 41.6%, moved 3.3% lower in September. Large-cap growth was the month’s only positive style, rounding out a September of lonely winners.

The Fed Raised Rates in September, by 25 basis points for the first time in three years, bringing the target upper limit to 4.00%. Brent Crude spiked drastically, up 25% and costing $119.97 per barrel as the Middle East conflict continues. The US inflation rate remained unchanged at 3.4%, a cooler reading than most had anticipated, while the 30-year mortgage rate crossed 7%.

Treasury yields moved much higher across the curve. Most notably, the 10-year jumped 54 basis points to 5.29%, levels not seen in 20 years. The 3-year and 5-year saw the joint biggest move, up 60 basis points each. The 1-month saw the most modest move, rising only 17 basis points, though a big enough jump to cross 4%. iShares iBoxx $ High Yield Corporate Bond ETF (HYG) fell by 2.7%.

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