Fall 2023 Investment Commentary

Major US equity indices retreated in Q3, with the S&P 500 hitting a year-to-date high at the end of July but falling thereafter, closing the quarter -3.7% lower, with most of the decline taking place during September. Still, the benchmark sits at +12.1% year-to-date at quarter-end. Big tech names were mixed but still offered some cushion, as the equal-weight S&P continued to lag the cap-weighted index. Energy was by far the best-performing sector as WTI crude rose around +29%, its strongest quarter since the Ukraine invasion in Q1’22. Meanwhile, the yield curve steepened as the 10Y yield touched its highest level since 2007, rising faster than shorter term bonds.