Stocks rallied last month as investors reacted to signs that inflation is coming down and that the Federal Reserve could start slowing its pace of interest rate hikes as soon as next week when the Federal Open Market Committee meets. Of the three major indexes, the Dow Jones Industrial Average (DJINDICES: ^DJI) finished the month up 5.7%, outperforming the S&P 500 and the Nasdaq Composite, as shown in the chart below shows. Two high-profile consumer names were the worst performing of the bunch: Disney (NYSE: DIS) and Apple (NASDAQ: AAPL).
Lovesac's (NASDAQ: LOVE) modular couch concept has been a big hit with consumers, but you wouldn't know it by looking at the stock's performance. Shares of Lovesac are down 60% year to date, and trade at a cheap valuation of less than 10 times this year's earnings estimates. In September, the company reported a 45% year-over-year sales increase for the second quarter, which ended in July.
The bond market has trudged through its worst year ever while the broad-based S&P 500, which is typically viewed as an all-encompassing barometer of stock market health, produced its worst first-half return since 1970. Despite the S&P 500 enduring 39 double-digit percentage declines since the beginning of 1950, every single one, save for the current bear market, was eventually cleared away by a bull market rally. Perhaps the best thing about today's stock market is that it's freer and fairer than at any point in history.