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Market Recap (September 21 2020)

September 21, 2020
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Last week started strong with the markets posting solid gains on Monday and Tuesday. Wednesday the markets turned flat or negative and that trend continued for the remainder of the week. By Friday all major indices posted modest losses. 
 
Headlines moving the market included:
  • Guidance from the Federal Reserve: in a recent policy statement they stated that our economic recovery could be a long one. That also reaffirmed their plan to potentially keep interest rates low for a prolonged period.
  • Continued negotiations on further fiscal stimulus: unfortunately, Democrats and Republicans remain at an impasse over the size of the deal and compromise is beginning to seem unlikely.
  • Consumer Sentiment: the most recent reading shows a strong improvement. That’s good news as consumers are the single largest contributor to our economy.
  • International relations: U.S. and China continue to trade threats. A possible trade war would be bad for many companies, with technology stocks being particularly hard it.
 
Looking forward, we have a week and a half until the end of the third quarter. While September has been a volatile month, the quarter looks to post solid gains across the board. That said, we do anticipate continued volatility as the election approaches and the economy continues to grapple with the Coronavirus pandemic.