The US stock market continued to rebound in July and August before declining slightly in September. For the third quarter, the Standard and Poor’s 500 Index returned +8.9% bringing 2020’s year-to-date return to +5.6%. The S&P has outperformed almost all other broad indexes, including the Dow Jones Industrial Average, which returned –0.9% for the year-to-date period. Most other important equity indexes have also produced single digit percentage declines this year (see Market Indicators box).
Interest rates were essentially unchanged during the quarter as global central banks continued to provide economic stimulus through abnormally low rates. Since year-end, the 10-year US Treasury yield has declined from 1.92% to 0.69%.