Market Recap – October 2013

Equities eventually managed to build on September’s Fed relief rally, thanks to the end of the federal government shutdown, a halt to the debt ceiling impasse, anticipation of further delay in Fed tapering, and generally encouraging Q3 corporate earnings reports. The S&P 500, the Dow industrials, and the small-cap Russell 2000 saw new all-time record closes yet again, while the Nasdaq ended October neck-and-neck with the Russell as the year-to-date leader. The S&P has now risen more than 6% since its low point during the government shutdown, and if the Russell were to end the year where it ended October, it would be the index’s fifth best annual percentage gain ever.* With continued healing in Europe, a pickup in Chinese manufacturing, and the postponement of potential Fed tightening, the Global Dow edged out its domestic counterpart, not only for the month but for all of 2013.

Removal of the threat of default on U.S. debt relieved pressure on short-term Treasury bills, bringing the yield back below that of one-year notes, while the 10-year yield remained comparatively stable throughout the month. After spending more than three months above $100 a barrel, the price of oil finally slipped to roughly $96. Gold also slid in October, losing roughly $67 an ounce and ending the month just under $1,350.

Chart reflects price changes, not total return. Because it does not include dividends or splits, it should not be used to benchmark performance of specific investments.

Source: Broadridge