Futures and commodities saw another period of extreme volatility in the third quarter of 2022 as central banks aggressively rose interest rates globally to belatedly fight inflation. These movers sent the USD soaring, with the British Pound hitting an all-time low. The Chinese Yuan, Euro and Japanese Yen hitting historical lows. Commodities had violent swings depending on how big the reversal to the mean was after the moves at the start of the year. Consistency was not a theme for example in energy; natural gas was the strongest commodity up 25.85% while Gasoline was the second weakest with a loss of 32.94%.
It was another brutal quarter for stocks and bonds in particular. The flip side of the stock market destruction was the VIX as fear took hold. The S&P 500 was down 1.51% on Friday, falling to 3,585.62. The index closed out its worst month since March 2020. Friday marked the last day of the month and the third quarter. For September, the Dow tumbled 8.8%, while the S&P 500 fell 9.3%. The Nasdaq lost 10.5%.
For the September quarter the S&P 500 fell 5.3%, Nasdaq dropped 4.1%, and the Dow lost 6.7%. S&P 500 and Nasdaq notched their first three-quarter losing streak since 2009. The Dow saw a third-straight losing quarter for the first time since 2015.
Sources: Finviz, TC
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