Q3 2020 Market Recap

This quarter enjoyed broad economic optimism, as jobless claims decreased (though obviously still elevated), manufacturing continued its rebound, and COVID-19 case counts decreased off the summer highs with continued positive news on the vaccine front.  U.S. stocks outperformed European stocks as the European continent began experiencing their own COVID-19 surge.  Growth stocks, particularly the technology sector, have been impacted less by the COVID-19 shutdowns and therefore outperformed Value stocks.

The heady optimism of August was tempered in September, however, as case counts plateaued, stimulus talks hit legislative logjams, and apprehensions over a fall COVID-19 resurgence with schools resuming and more time spent indoors resurfaced.  As previously discussed, Federal Reserve Chairman Jerome Powell’s Jackson Hole speech and position papers indicating the Federal Reserve’s intention was to keep rates lower for longer pushed Value stocks to outperform Growth for the month.