August PMC Monthly Market Recap
Small caps led the way in August as the equity market rally broadened during the month. The small cap asset class is now firmly in the black for the year after a long period in the red.
- August was a generally positive month for global financial markets. It capped a strong summer for investors, especially for stockholders.
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Equity markets endured volatility to begin and end the month but ultimately delivered solid results. Gains broadened in August, too.
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Fixed income returns were also strong in August as the Federal Reserve opened the rhetorical door to a September interest rate cut.
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US economic data softened in August. The labor market has developed a few cracks, but a recession still doesn’t appear imminent.
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What we’re watching: Can US interest rates decline without lifting inflation higher next year?