U.S. stock returns were positive for the fifth straight month, rose to several new highs in September, and posted strong returns for the quarter. Foreign stocks performed even better for the quarter, led by emerging market stocks. The bond market also put up robust returns for the quarter as inflation and interest rates trended down.

•The S&P 500 gained more than 2% in September as inflation slowed, economic growth continued, and the Federal Reserve began cutting interest rates. For the quarter the index was up 5.9%. Small-cap stocks performed even better up 9.3% for the quarter.

•Technology stocks lagged as investors moved into other areas. Value stocks were up 9.4%, outperforming the broader market and growth stocks by a wide margin for the quarter.

•Dividend stocks outperformed the broader market by nearly 3% for the quarter and were up 8.9% for the quarter.

•Foreign developed market stocks were up 7.3% for the quarter, while emerging market stocks did a little better, up 8.9%

•With inflationary pressures fading, the Federal Reserve cut interest rates for the first time since 2020.

•U.S. bonds were up 5.2% for the quarter and 11.6% the past year.

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