Week ending Sept. 8: Labor costs, hawkish Fed push markets lower.
An improving geopolitical situation and rising inventories contributed to a slick decline in futures prices of oil to $65 per barrel last week. However, an up tick in labor costs and hawkish comments from Fed officials pushed the markets nervously lower. After an unusually strong 2.3% rise in the month of August, the Morningstar US Market Index finished the holiday-shortened week down 1%.
The Morningstar Market Barometer was red across the board as all nine Morningstar Style Indexes lost ground. The heaviest losses ran through small-cap and growth stocks. The Morningstar Small Growth Index being the worst performer posting a 2.1% loss. The Morningstar Large Core Index managed to be the best performer with a loss of only 0.5%.
Morningstar Large Core Index constituent Johnson & Johnson