Third Quarter 2017 Market Recap

(For the quarter ended September 30, 2017.)

Summer’s storms may have wreaked havoc from San Juan to Houston, but on U. S. stock markets the sailing was smoother and the rising tide lifted the boats. When the clouds cleared and the sun set on the quarter, the S&P 500 was at its all-time closing high of more than 2,519 and the NASDAQ Composite was at its record, just shy of 6,496. The economy did not escape unscathed. Prices for gasoline and other energy products from the Gulf Coast surged. Property damage and other costs were still being tallied at September’s end, but they were sure to run into hundreds of billions of dollars. Some of that will be covered by disaster aid and donations, but much more is expected to come from the coffers of insurance companies, potentially depressing their performance for months to come.

Through 
9/30/17*
S&P 500 Dow Jones Industrial Average NASDAQ Composite
Quarter

3.96%

4.94%

5.79%

1-Year Annualized

16.2%

22.4%

22.3%

3-Year Annualized

8.5%

9.5%

13.1%

5-YearAnnualized

11.8%

10.8%

15.8%

Closing Value

2,519.36

22,405.09

6,495.96


Source: DST Systems, Inc. The S&P 500, Dow Jones Industrials, and NASDAQ Composite are unmanaged indexes. It is not possible to invest directly in an index. Index performance does not reflect the effects of investing costs and taxes. Actual results would vary from benchmarks and would likely have been lower. Past performance is no guarantee of future results. Not responsible for any errors or omissions.

*Price only. Does not include dividends.

Economy While the third quarter is yet to be tallied, the second quarter proved to be strong. After adjusting for inflation, growth ran at a 3.1% annual rate from April to June, more than twice the pace of the winter quarter. The Commerce Department said accelerated consumer spending helped drive the growth.

Fed News The Federal Reserve kept short-term interest rates low during the third quarter in order to encourage further growth. The most recently announced rate target was 1% to 1.25%.

Bond Market Update At quarter’s end (Friday, September 29, 2017), the Treasury market’s one-year interest rate benchmark was 1.27%, the 30-year fixed-rate benchmark was 2.86%, and the 30-year inflation indexed benchmark was 0.94%.