United States
Equity Market Review &
Outlook
Volatile 6 months for the S&P 500 Index
U.S equity investors endured a volatile six months to October
2013.The period opened strong and positive largely supported
by central banks maintaining their accommodative policy
stance. Market sentiment wavered mid-way through the second
quarter, with the pivotal announcement that the Federal
Reserve (Fed) may begin to scale back its quantitative easing
program, provided the U.S economy improved as expected.
Concerns by investors of the withdrawal of the Fed support
rattled the markets causing a 5.7% drop in the S&P 500 Index
from the date of announcement to its lowest point, for the
period (1573.09 on 24June). Efforts by the US Federal Reserve
to ease the market’s fears coupled with an improvement in
released Q2 corporate earnings results, stabilized and boosted
market sentiment and performance as the S&P reached