Citi Personal Wealth Management

Spooked in September

Monthly Market Snapshot: September 2020

Highlights

Globally, stocks tumbled in September as investors sought clarity from Washington and reassessed the path of COVID-19. In the United States, the S&P 500 fell by 3.9% in the month, but still closed the third quarter 8.5% higher. The tech-heavy NASDAQ tumbled 5.2% in the month, but rose 11.0% during the quarter. On the upside, the monthly declines shook off some of the market’s froth. The 10-year U.S. Treasury yield fell 2 basis points to 0.68%.

After an extremely strong rally, U.S. stocks experienced a technical correction as investors trimmed technology positions. Looking ahead, rising uncertainty about the U.S. presidential election and path of COVID-19 during the winter months may keep investors from taking on additional risk. On the upside, there are few signs that the recovery is stalling.

Citi Private Bank’s Global Investment Committee (GIC) holds an overweight on global equities, particularly small- and mid-capitalization share globally. The Committee is also overweight investment grade corporate bonds and U.S. residential and commercial mortgage REITS.