From Equity Research
Hawkish commentary from the Fed weighed on markets in August as investors parsed the outlook for rising rates amidst broad economic uncertainty. It was a challenging month for equities with recession fears and rising interest rates providing an overhang all while consumers and businesses grappled with a difficult inflation environment. With this backdrop, the VIX Index or “fear gauge” rose from near 21 to end the month near 27. For the full month, all major equity indexes were negative with the Dow Jones Industrial Average decreasing 4.1%, the S&P 500® index down 4.2%, and the smaller cap weighted Russell 2000® down 2.2% for the month.