Skip to Content
Fund Spy

U.S. Equity Funds: Third-Quarter Wrap-Up

Tech led the way, and value underperformed.

Mentioned: , , , , , , , , ,

Although U.S. stock indexes rose to all-time highs in early September, they quickly sold off on concerns about the Delta variant, a potential federal debt default, and a big housing sector crisis in China. Overall, the Morningstar U.S. Market Index eked out a 0.3% gain in the third quarter, lagging its international counterpart, the Morningstar Global Markets ex U.S. Index, which gained 0.94% over the same period.

Technology led the way, with the Morningstar U.S. Technology Index gaining 2.0%. Energy’s big rebound earlier this year lost some stream in the third quarter as the pandemic’s resurgence muddied the outlook for near-term demand. The Morningstar U.S. Energy Index declined 1.1%, but remains the clear winner so far this year, up 45%. Other sectors posted small single-digit gains or losses, except the Morningstar U.S. Basic Materials and Morningstar U.S. Industrials indexes, which were the worst performers with 3.8% and 4.0% declines, respectively.

Eric Schultz does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.