The third quarter of 2023 brought significant losses across major indexes and sectors, with the S&P 500 and Bloomberg Aggregate Bond Index each dropping by 3.3% and 3.2%, respectively, according to recent investment reports. Other categories like domestic stock funds, taxable bonds, and internationally oriented stock funds weren't spared either, witnessing declines of 3.5%, 1.1%, and 4.7%.
Tech giants Nvidia (NASDAQ:NVDA) and Apple (NASDAQ:AAPL) were among the most affected. Nvidia's shares fell nearly 12%, while Apple, contributing to a quarter of the S&P 500's decline, saw its shares drop by 11.7%. These figures were calculated by Birinyi Associates.
The Federal Reserve's decision to raise interest rates in an attempt to combat inflation was a significant factor behind these losses across stocks and bonds.
However, it wasn't all doom and gloom in the market. The energy sector saw some notable gains amid rising energy prices. Exxon Mobil (NYSE:XOM) enjoyed a surge of 9.6%, while Marathon Petroleum (NYSE:MPC) saw an impressive increase of 29.8%. This upward trend in energy stocks was not universal though, as Solar Edge suffered a substantial loss of 51.9%.
Interestingly, the higher fossil fuel prices turned out to be beneficial for certain funds. Despite the overall negative market performance, the Vanguard Energy Index Fund managed to capitalize on this situation, further highlighting the current volatility and sector-specific dynamics at play in the market.
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