Market Brief – Friday 9/18/20

Stocks were quiet in overnight trading ahead of quadruple-witching day, a day when a large number of options contracts expire and volatility is usually high. Treasury yields fell in overnight trading but were immediately slammed higher at the market open.

The University of Michigan’s Preliminary Consumer Confidence Survey for September showed an increase in consumer sentiment, current conditions, and consumer expectations. Inflation expectations and five-year inflation expectations fell.

Stocks closed lower on the day and Treasury yields higher. With month- and quarter-end rebalancing starting next week, volatility is expected to rise as a large amount of money is expected to flow out of equities and into bonds. The dollar was flat on the day and crude oil slightly lower.