In the third quarter of 2024, the Federal Reserve made its first interest rate cut of the cycle, reducing rates by 0.50%. This move was driven by rising unemployment, reaching a 33-month high, and inflation returning to target levels. Despite market volatility, including a sharp sell-off in August, equities finished the quarter higher. The S&P 500 achieved its fourth consecutive quarterly gain, approaching record highs by the end of September.

In 2024, the S&P 500 index had a return of over 10% for the second quarter in a row, resulting in the setting of multiple new all-time highs. In this recap, we will review the first quarter, discuss the strong start of the stock market in 2024 and provide an overview of what to expect for the rest of the year.

Financial markets underwent a sizeable shift in the fourth quarter. Treasury yields spiked in Q3, reversed lower as inflation eased, and the Federal Reserve hinted at interest rate cuts in 2024. The decline in interest rates was a significant tailwind for stocks and bonds. Here, we will recap the fourth quarter and look ahead to 2024.

Stocks and bonds were both impacted by a chain of events during the third quarter. It started with rising oil prices, which caused inflation to re-accelerate in August. Here we recap the third quarter, discuss the rise in oil prices and interest rates, and look ahead to the fourth quarter of 2023.

A year can make a big difference. One year ago, the market was trying to catch its breath after a chaotic start to 2022. We review the second quarter, recap the strong start to 2023, and discuss our outlook for the second half of the year.

First quarter economic data showed the U.S. economy entered 2023 with considerable momentum, even in light of the Federal Reserve’s interest rate hikes throughout 2022.

Markets faced several challenges in 2022, including high inflation, historic central bank policy, the war in Ukraine, and Covid lockdowns in China.

The S&P 500 finished the third quarter down -4.9%, while the 2-year Treasury yield reached levels not seen since 2007. This recap covers the third quarter and provides an update on the key questions markets faced at the start of the third quarter.

In response to persistent inflation, the Federal Reserve continued tightening monetary policy by raising interest rates at each April, May, and June meeting.

There was no shortage of events for the market to navigate, including the Federal Reserve’s first interest rate increase since December 2018, Russia’s invasion of Ukraine, and stubbornly high inflation pressures.

Despite 2021’s many extraordinary headlines, the S&P 500 traded higher during the quarter and finished the year with a +28.6% total return.

Returns on the S&P 500 have held strong after the significant pullback experienced in the early part of 2020.

Returns on the S&P 500 have held strong after the significant pullback experienced in the early part of 2020.