Economic and Market Review

Q3 in Retrospect

Hand with heart

Riding on the backs of extraordinary U.S. fiscal and monetary policy support, domestic stocks overall continued their sharp recovery from the March lows to post positive gains for another quarter. The S&P 500 Index dashed towards a new all-time high of 3,588 in early September before finishing the third quarter up 8.9%. Sprinting alongside the rise in U.S. large cap equity indices has been the sharp snap-back in overall economic activity, which is providing encouraging fundamental support for these lofty equity levels early in the recovery. The pace of rehiring over the past five months has exceeded expectations, and 3rd quarter U.S. GDP growth could be up well over 20%. These are impressive early gains so far for both stocks and the economy. But not so fast – we still have a long stretch to go before we finish this race towards full recovery, and there are some hurdles we have to get over on the track ahead.

Full Report

Brian Henderson
This report was prepared by J. Brian Henderson, CFA, Chief Investment Officer for BOK Financial.

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