From Equity Research
September lived up to its reputation as a tough month for equities as markets faced a wide range of macro concerns. Congressional gridlock, ongoing COVID-19 challenges, questions about China growth, delays in global logistics networks, the outlook for interest rates, inflation rising and oil prices surging all combined to create a challenging market backdrop for September. Market volatility reflected the tough environment with the VIX index or “fear gauge” steadily rising from about 16.5 at the beginning of September to end the month above the 23 level. For the full month, the Dow Jones Industrial Average decreased 4.3%, the S&P 500® index decreased 4.8%, and the smaller cap weighted Russell 2000® decreased 3.1%.