While history has shown that October is a tumultuous month for equities, this year has been the exact opposite. Stock markets gained sharply, finishing the month with their strongest month since June. Following a 5.2% drop in September, markets rebounded in October, with the S&P 500 regaining an outstanding 6.6% for the month and 1.1% last week. The S&P 500 has gained ground for the fourth week in a row.
This was led by both the growth and value sectors, despite the 10-year Treasury yield rising to 1.57 percent and high-profile technology firms like Amazon and Apple falling short on earnings. And volatility appeared to diminish this month as well: the VIX index fell to about 17.0, in line with levels prior to the outbreak, adding to the upbeat tone in markets.
Another reason markets climbed last week was progress on the Biden administration's social infrastructure plan. President Biden declared that his administration and Democratic senators had reached an agreement on a $1.75 trillion plan, but the details have yet to be finalized, and negotiations are ongoing.
The S&P 500 returned 1.14% last week, compared to 1.04% for One Signal Xpert and 1.33% for One Signal Xpress, outperforming the benchmark. Looking at year-to-date numbers, One Signal Xpert is up 26.03%, One Signal Xpress by 28.61%, compared to the S&P 500 returning 22.33%.