US equity markets have made a steady climb in recent months, with notable gains in the US large-cap Russell 1000® Index and US small-cap Russell 2000® Index in July and August. And this trend may or may not continue into the Fall as we reach an inflection point for U.S. investors, according to data and insight from global index provider FTSE Russell.
The Russell 1000 has risen 11.5% in the third quarter and 5.4% in August as of August 25th and is now up 8.4% for the year. The Russell 2000, while still down 5% in 2020, has gained 9.2% and 6.2% for the second quarter and August, respectively.
Philip Lawlor, Managing Director, Global Equity Market Research, FTSE Russell:
“US equity markets continue to enjoy the benefits of a very supportive Fed policy approach, which was only reinforced by Chairman Powell's recent Jackson Hole speech, as the Central bank retains capacity to continue asset buying and further cuts in interest rates to essentially force money out of savings and into investments. Yet we’ve reached a clear inflection point as we move into the Fall and investors begin to weigh concerns about election uncertainty and the potential downsides of higher taxes and increased regulation that may come with a Democratic sweep. In addition, the progression of the coronavirus remains a wild card globally, and a potential “second wave” of infections in the U.S. could deliver a major blow to market sentiment.”
For more information on the Russell US indexes, go to the FTSE Russell website.
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