U.S. equity markets advanced 7.1% (Russell 3000) on solid earnings, economic growth and a tightening labor market.
With continuing trade tensions, international equities increased at a slower pace than domestic equities, posting a 0.7% gain over the quarter (MSCI ACWI ex U.S.).
The U.S. fixed income market was flat for the quarter (Bloomberg Barclays Aggregate) as interest rates increased modestly. Additionally, the yield curve continued to flatten during the quarter.
U.S. unemployment fell to 3.7% in September, which marked the lowest level since 1969. The number of job openings now exceeds the number of unemployed.
GDP growth accelerated in the second quarter to 4.2%, the fastest pace in nearly four years.
Growth continued to outperform value this quarter with the Russell 1000 Growth outperforming the Russell 1000 Value by 3.5%.
The Federal Reserve raised interest rates in September for the third time this year and signaled the likelihood of none more rate hike in 2018.
