Michael P. Reinking, CFA
Sr. Market Strategist

The S&P 500 fell 3.6% in Q3 ending the quarter with four consecutive weeks of declines, the longest streak since last December. On Friday equities opened higher following global inflation data that suggested the disinflationary process was intact - which helped yields pull back however, as Treasuries began to sell off throughout the session so did equities. The S&P 500 ended the session lower by 0.3%. Over the weekend the US government narrowly averted a shutdown with a stopgap funding bill that kicks the can down the road to November 17, so we get to do this song and dance all over again ahead of Thanksgiving. This along with hopes that some of the seasonal headwinds would magically disappear with the turning of the page on the calendar helped S&P futures pop overnight. However, yields began to move higher following some hawkish central bank commentary and the fact that this week’s economic data would not be delayed increasing the possibility that the Fed could hike rates which seemed to take the wind out of the sails of equities.