Fidelity Institutional
October 25, 2024
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Q3 2024 Quarterly Market Update

Our quarterly market outlook, presented by Fidelity's Asset Allocation Research Team (AART) uncovers major themes in the global financial markets, as well as investment insights and market forecasts for the quarter.

Key Takeaways

  • Markets:  Equities continued to rally in Q3, led by previous laggards, real estate, US value, and small-cap stocks. After a spiking in August, volatility decreased, leading to a productive September.
  • Economy:  The US labor market showed signs of cooling but remained strong overall. Major global economies continued to expand though manufacturing softened. In China, new policies to boost stock prices were introduced, but their long-term impact remains uncertain.
  • Investments:  Central banks in the US and England cut interest rates, which contributed to favorable market conditions.
  • Valuations:  Expansion in valuation multiples drove gains in the S&P 500. With valuations of US stocks near historic highs, future growth may depend on earnings growth. Elsewhere, valuations for developed markets were below long-term averages, in emerging markets, slightly above.

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