Market Wrap Up-August 2017

The S&P 500 eked out a narrow total return gain in August, rising 0.31% even as volatility picked up after a placid start to the year. The narrower based DJIA gained 0.65% while the Nasdaq Composite Index extended its record streak and ended up 1.43%.  August proved to be an eventful month, as economic and financial developments combined with politics and geopolitical events to upend a stretch of much calmer trading over the preceding two months in particular. Near the end of the month, Hurricane Harvey led to widespread devastation across Texas that also impacted U.S. refining capacity in the region.  Still, the performance of most major asset classes was broadly positive again in August.  Bonds in the U.S. outperformed the S&P 500 Index for the first time this year, gaining 0.9% as investors sought shelter in gold and U.S. Treasuries which saw yields drop.  Global bonds also performed well, registering an increase of 1.0% due to a broad-based contribution from almost all fixed income asset classes.