Executive Mosaic’s GovCon Index gained a modest 0.1% to close at $135.54 on the last trading day of the month and quarter. All three major indexes had a good start but eventually gave in to the selling pressure. The Nasdaq Composite registered a marginal gain of 0.14%, but the Dow Jones Industrial Average and the S&P 500 fell 0.47% and 0.27%.
The September Effect manifested as it usually does. This stock market anomaly consistently shows negative returns every ninth month of the year. It was the worst month for the Nasdaq and S&P 500, whose negative returns in September 2023 reached 5.8% and 4.9%. The blue-chip Dow Jones sunk 3.5% for the month and 2.6% for the quarter.
However, beyond the market anomaly, an impending government shutdown, a higher-for-longer interest rate scenario, and surging oil prices spook investors. They await economic data or indicators next week, including the Job Openings and Labor Turnover Survey, September jobs report, ISM Manufacturing, and U.S. trade deficit.
Nearly half, or 13 of the 30 GCI constituents, advanced on Friday. Globalstar (NYSE: GSAT) was the top ticker, rising 6.5% to $1.31. Accenture plc (NYSE: ACN) and Palantir Technologies (NYSE: PLTR) round up the top three advancers with gains of 2.11% and 1.46%. BAE Systems and Tetra Tech (Nasdaq: TTEK) shed 2.11% and 1.62% to lead the decliners.