Skip to content

Quarterly Market Review

Quarterly Market Review

Quarterly Market Review: July-September 2018

The Markets (as of market close September 28, 2018)

The third quarter proved to be very strong for domestic stocks. July saw the major benchmark indexes listed here enjoy robust gains, led by the large caps of the Dow and S&P 500. Global stocks also rebounded in July, with the Global Dow surging 3.76% by the end of July. Favorable economic indicators and encouraging corporate earnings reports were enough to quell investor concerns over the continuing saga that is the back-and-forth trade tariffs between the United States and China.

August saw stocks continue to push ahead. Several of the benchmark indexes listed here reached record highs during the month. Both the Dow and S&P 500 posted monthly gains of 2.16% and 3.03%, respectively. However, tech stocks and small caps made notable monthly gains. The Nasdaq increased by almost 6.0%, while the Russell 2000 eclipsed 4.0%. Corporate earnings continued to soar on the heels of corporate tax cuts, consumer spending, and global growth.

Toward the end of September, a new round of reciprocal tariffs between the United States and China kicked in as it appears neither economic giant is ready to flinch. The United States imposed an additional $200 billion in tariffs on Chinese goods, prompting China to assess $60 billion worth of tariffs on U.S. products. This follows each country’s initial volley of $50 billion in tariffs on their respective imports. As a result, the benchmark indexes listed here produced a mixed bag of returns for the month. The large caps of the Dow and S&P 500 posted gains, as did the Global Dow, which rose a strong 1.50% for September. However, the Nasdaq and the Russell 2000 fell from their August end-of-month values.

For the third quarter, each of the indexes listed here posted solid gains, led by the large caps of the Dow and the S&P 500. The tech-heavy Nasdaq continued its strong showing while the small caps of the Russell 2000 posted moderate quarterly gains. Prices for 10-year Treasuries dropped by the end of the quarter, pushing yields higher by 20 basis points. Crude oil prices closed the quarter at about $73.53 per barrel by the end of September, $0.72 per barrel lower than prices at the close of the second quarter. Gold closed the quarter at roughly $1,195.20, noticeably lower than its $1,254.20 price at the end of June. Regular gasoline, which was $2.833 on the 25th of June, inched higher to $2.844 on September 24.

Market/Index 2017 Close As of 9/28 Month Change Quarter Change YTD Change
DJIA 24719.22 26458.31 1.90% 9.01% 7.04%
NASDAQ 6903.39 8046.35 -0.78% 7.14% 16.56%
S&P 500 2673.61 2913.98 0.43% 7.20% 8.99%
Russell 2000 1535.51 1696.57 -2.54% 3.26% 10.49%
Global Dow 3085.41 3121.54 1.50% 4.77% 1.17%
Fed. Funds 1.25%-1.50% 2.00%-2.25% 25 bps 25 bps 75 bps
10-year Treasuries 2.41% 3.06% 21 bps 20 bps 65 bps
Market/Index DJIA
2017 Close 24719.22
As of 9/28 26458.31
Month Change 1.90%
Quarter Change 9.01%
YTD Change 7.04%
Market/Index NASDAQ
2017 Close 6903.39
As of 6/29 8046.35
Month Change -0.78%
Quarter Change 7.14%
YTD Change 16.56%
Market/Index S&P 500
2017 Close 2673.61
As of 6/29 2913.98
Month Change 0.43%
Quarter Change 7.20%
YTD Change 8.98%
Market/Index Russell 2000
2017 Close 1535.51
As of 6/29 1696.57
Month Change -2.54%
Quarter Change 3.26%
YTD Change 10.49%
Market/Index Global Dow
2017 Close 3085.41
As of 6/29 3121.54
Month Change 1.50%
Quarter Change 4.77%
YTD Change 1.17%
Market/Index Fed. Funds
2017 Close 1.25%-1.50%
As of 6/29 2.00%-2.25%
Month Change 25 bps
Quarter Change 25 bps
YTD Change 75 bps
Market/Index 10-year Treasuries
2017 Close 2.41%
As of 6/29 3.06%
Month Change 21 bps
Quarter Change 20 bps
YTD Change 65 bps

 

Chart reflects price changes, not total return. Because it does not include dividends or splits, it should not be used to benchmark performance of specific investments.