Stock market news

Stocks lose momentum and end the month modestly lower – After opening higher on Friday on enthusiasm around a better core PCE inflation reading, stocks ended up closing the day modestly lower. This came as a last-minute attempt by Speaker Kevin McCarthy to keep the U.S. government open did not pass. The S&P 500 is down about 4.8% for the month and is lower by around 6.4% since its recent high on July 31. The technology-heavy Nasdaq saw bigger losses, pulling back 5.5% for the month and 7.5% since July 31*. Bond yields held steady on Friday, with the 10-year Treasury yield at 4.58%*, still near the highs of the cycle. The rapid rise in yields this month, with the 10-year up nearly 0.5% in September, has weighed on both stock and bond returns. However, in our view, yields may be heading toward a peak, which would be welcomed by equity and fixed-income investors.

^*FactSet

Football season is in full swing, and although there are a handful of undefeated teams that have yet to experience any real adversity, many fans have already had their loyalty tested as they've watched their team underperform. But every diehard knows you're never out of it, as there's always the potential for a fourth-quarter comeback. That is exactly what investors are rooting for after the stock market's disappointing performance in the third quarter, which drew to a close last week. There are no scripts for financial markets, but here are three conditions that we think support the prospects for a solid finish to the 2023 season:

Market volatility is normal, yet unpredictable and emotional. While we can’t control the market, we can control our reactions to it. We’re committed to keeping you in the know about the latest market and economic developments.

Market news is everywhere - but what does it all mean for you, and how should you react? Each month, our investment strategists share their thoughts on the latest market and economic developments, and offer investing tips you can use as you work toward your long-term financial goals.

The Quarterly Market Outlook offers our perspective on recent activity in the capital markets. The Edward Jones Investment Policy Committee offers its viewpoints on the U.S. economy, stocks, the bond market, international markets and asset classes, as well as a special topic of interest to investors each quarter.

These aren’t short-term predictions. Rather, this is Edward Jones’ perspective on market and economic topics, designed to help you make decisions affecting your long-term financial strategy. As you read through each topic, you'll find specific actions you can discuss with your financial advisor.