Market Update: Wed, Oct 3, 2019 | LPL Financial Research

Daily Insights

A rough start. Stocks are searching for direction this morning after a rough start to the fourth quarter. The S&P 500 Index dropped about 3% in the past two trading sessions, the first time the benchmark has dropped 1% on consecutive days to start the fourth quarter. However, it’s important to remember that the S&P 500 is still up about 16% year-to-date, and we still see encouraging signs in economic data. We’ll get more color on the economic front in the September jobs report, which is scheduled to be released October 4.

Fourth quarter thoughts. After a calm September, we expected October to deliver larger swings and more volatility, as we noted on the LPL Research blog yesterday. We’ve also officially kicked off the fourth quarter, which is a historically strong quarter for stocks. In 2018, the S&P 500 lost 14% during the fourth quarter, but we haven’t seen back-to-back lower fourth quarters since the financial crisis, and only twice since World War II. We will dive more into this potentially bullish quarter today on the LPL Research blog.


The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual security. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. The economic forecasts set forth in this material may not develop as predicted.

All company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities.

All indexes are unmanaged and cannot be invested into directly. Unmanaged index returns do not reflect fees, expenses, or sales charges, Index performance is not indicative of the performance of any investment.

Because of their narrow focus, sector investing will be subject to greater volatility than investing more broadly across many sectors and companies.

Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.

All performance referenced is historical and is no guarantee of future results.

This research material has been prepared by LPL Financial LLC.

Securities and advisory services offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC).

Insurance products are offered through LPL or its licensed affiliates. To the extent you are receiving investment advice from a separately registered independent investment advisor, please note that LPL is not an affiliate of and makes no representation with respect to such entity.

  • Not Insured by FDIC/NCUA or Any Other Government Agency
  • Not Bank/Credit Union Guaranteed
  • Not Bank/Credit Union Deposits or Obligations
  • May Lose Value


For Public Use – Tracking # 1-900493