LPL Research

Stocks fell for a third straight week as investors gauged the health of the U.S. economy and its impact on future monetary policy.

October historically has been a volatile month but also the third strongest month of the year for the S&P 500 Index

Stocks searched for direction this week as investors digested news of political tensions and signs of trade progress.

The U.S. economy continues to perform well when compared to the rest of the developed world, and is still exhibiting growth near its long-term trend. The outlook in other developed economies is not quite as bright, however, as unconventional and aggressive policy decisions from global central banks are becoming increasingly ineffective.

Since we began highlighting the return of fiscal leadership as a primary driver for economic and market activity nearly two years ago, we’ve seen the return to central bank dominance, particularly by the U.S. Federal Reserve. This has significant implications for global markets.

Large cap equities outperformed small caps, while the growth style of investing modestly outpaced value

We have maintained our S&P 500 Index year-end fair value target of 3,000, even after the index broached that target September 17.

There’s a growing pile of negative-yielding debt around the world amid extraordinary monetary policy initiatives.

Equities continued to rise this week, sending the S&P 500 Index back over the 3,000 level and near its record high of 3,027.98 set July 26.

Equities investors endured another volatile week, book-ended by positive trade vibes Monday, August 19, only to be thrust into negative territory Friday, August 23.