The S&P 500 finished the third quarter down -4.9%, while the 2-year Treasury yield reached levels not seen since 2007. This recap covers the third quarter and provides an update on the key questions markets faced at the start of the third quarter.

In response to persistent inflation, the Federal Reserve continued tightening monetary policy by raising interest rates at each April, May, and June meeting.

There was no shortage of events for the market to navigate, including the Federal Reserve’s first interest rate increase since December 2018, Russia’s invasion of Ukraine, and stubbornly high inflation pressures.

Despite 2021’s many extraordinary headlines, the S&P 500 traded higher during the quarter and finished the year with a +28.6% total return.

Returns on the S&P 500 have held strong after the significant pullback experienced in the early part of 2020.

Returns on the S&P 500 have held strong after the significant pullback experienced in the early part of 2020.