Markets continue to show resilience in September, with global breadth expanding and leadership broadening beyond the U.S. tech giants. Strength in financials, commodities, and select communications names highlights a constructive backdrop despite the seasonally challenging period.
Key Points:
Markets Defying September Weakness
- The S&P is up 0.72% so far this month following a strong August, with breadth improving globally—an unusually resilient setup for what is historically the weakest part of the calendar.
Leadership Broadening Beyond U.S. Tech
- While the NASDAQ 100 remains near highs, equal-weighted indexes have lagged. More companies are starting to outperform the index, signaling that leadership is becoming less reliant on the “Magnificent Seven.”
Global Structural Bull Markets Emerging
- Developed markets outside the U.S. are making new highs for the first time in years—Japan’s Nikkei at levels not seen since 1991, Europe pushing higher, and strength extending across Asia, Africa, and Latin America.
Commodities and Materials in Focus
- Gold remains in a powerful uptrend above $3,700, central banks are increasing allocations, and copper is breaking out with Anglo American and Teck Resources announcing a merger. Our positions in Hudbay continues to lead.
Sector Standouts: Financials, Energy, Communications
- U.S. financials like Morgan Stanley and JPMorgan are making new highs, Canadian and Eurozone banks are firm, energy breadth is improving with Imperial Oil at record highs, and communications names (Google, Netflix, Take-Two, Sea Ltd.) are strong performers.
Risk Backdrop Remains Constructive
- Credit spreads are tight, volatility is low, and breadth is improving across major markets. Despite seasonal caution, the market backdrop points to continued resilience, with portfolios fully invested and a little cash on hand for flexibility.