Authored by FTSE Russell’s Global Investment Research team, this new quarterly publication provides a deep-dive into the performance and key market drivers of US equities, viewed through the lens of Russell large-cap (Russell 1000), small-cap (Russell 2000), Growth and Value indexes.

Third Quarter 2021: Large-cap winning streak continues into Q3, buoyed by Growth outperformance

The robust reopening rally in US stocks lost steam in Q3, mired by broad September losses, as investors recalibrated expectations for the US recovery, inflation and Fed policy support. Amid big swings in risk appetite and a late-quarter bond-market selloff, Russell 1000 and large-cap Growth outperformed, trimming small-cap Value’s huge YTD lead.

Q3 Highlights

  • Recovery headwinds spur large-cap Growth rebound
  • Growth-heavy industries top the charts
  • Sector contributions also show tilt to growth
  • EPS upgrade cycle slows
  • Valuations remain at five-year highs