Investors were dealt a mixed hand in the third quarter as U.S. large-cap stocks, measured by the S&P 500 Index, gained 2.3%, while the small-cap Russell 2000 Index declined 7.2%.
The Bloomberg Municipal 1-10 Year Blend Index ended the quarter down 4.1%, including a 3.4% decline in September, bringing its year-to-date returns to -3.1%. September marked the index’s worst month on record, which goes back to 1993.
Personal spending rose a remarkable 0.9% in August, well ahead of income growth of 0.2%, even as the Conference Board’s Consumer Confidence Index fell to its lowest level since 2014.
With second-quarter reporting complete, the S&P 500 posted earnings growth of 52%,the strongest since the second quarter of 2021, along with record net profit margins of 17%.
Seasonality following midterm elections remains the most potentially bullish wild card.
3Q 2026 Commentary: Wild Cards
Summary
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