Week of 9/18/17 – 9/22/17: It was a relatively quiet week for the broad indices as most closed within a half percent of where they opened. The Dow, S&P 500, and Nasdaq all posted gains early in the week but some selling on Thursday led to mixed results. Up a modest 0.3%, the Dow posted the biggest gain while the S&P 500 closed flat and the Nasdaq gave back about 0.3% week over week. International benchmarks closed up on the week with the ACWI, up 0.3%, and the EAFE, up 0.7%. Emerging markets closed flat after a strong start to the week.
Sector performance told a more clear story this past week as news ranging from devastating weather events to more political banter moved market segments more deliberately. Financials and Energy stocks had the strongest week, both posting more than 2% gains. The Feds announcement that they will be reducing their investment in bonds led to a small spike in treasury yields as the 10y closed up 6bps and curve flattened. Stock volume was lower and the VIX dropped back below 10 as the market seems to be awaiting more decisive direction.