Wall Street’s performance has been strong in the third quarter despite the recent market rout. Though the major U.S. stock indices logged in four consecutive weeks of losses, the S&P 500 and the Nasdaq Composite Index are on track for their best two-quarter winning streaks since 2009 and 2000, respectively.
Positive development surrounding COVID-19 vaccine and continued support from the Federal Reserve boosted the market. The encouraging data indicating that the U.S. economy is gradually returning to the pre-pandemic level also added to the strength. Additionally, renewed hopes for further stimulus coupled with bouts of upbeat economic data lifted investors’ sentiment. U.S. House of Representatives Speaker Nancy Pelosi indicated that the talks for the long stalled stimulus package of $2.2 trillion coronavirus relief bill have been continuing and it might come before November elections (read: Trump vs. Biden First Presidential Debate: ETFs in Focus).
However, volatility would continue to shake