The broad US economic trend decelerated in September for a second month in a row, according to today’s update of the three-month average of the Chicago Fed National Activity Index (CFNAI-MA3). The benchmark dipped to -0.21 last month, the lowest reading since May. The below-zero data indicates that economic activity remains moderately below the historical trend rate, although the rebound in the macro trend since the spring has stumbled in the last two months of the third quarter.
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Markets roared back to life last week, rebounding after widespread losses in the previous week. The big winner for the five trading days through Oct. 21: emerging market stocks, which led the rally among a set of proxy ETFs representing the major asset classes. Meanwhile, last week’s losers were limited to fractional losses in foreign corporate bonds and commodities.
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