After a blistering five-month rally, the market dipped in September, testing investor confidence with its most significant pullback since March.

It was a volatile month for stocks, punctuated by weakness in big tech, surging COVID infections across Europe, a stimulus stalemate in Washington, and election jitters. While progress continued on the vaccine front, economic data underlined concerns about the recoveries in the labor market and broader US economy. With unemployment still near its highest level in almost a decade and second-quarter GDP down more than 30%, the Federal Reserve committed to holding interest rates near zero for at least the next few years, and Chairman Jerome Powell once again pressed lawmakers for more federal stimulus to help bolster the recovery.1

Here’s a quick rundown of what else happened in the markets last month and what’s on the horizon.

US equities

Stocks posted their first monthly loss since March. After reaching new record highs in early September, the Nasdaq twice fell into correction territory (down 10% from a recent high) while the S&P 500 crossed that threshold on an intraday basis before a late-month bounce helped limit the damage. Both indexes are still positive for the year.

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Tech shares were especially volatile, although many analysts viewed the pullback as an understandable development for a potentially overheated area of the market. The materials sector was the month’s best performer (and the second-best last quarter), fueled by a pickup in demand as the economy reopened.

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International equities

International equities also lost ground, but overseas valuations continue to look attractive compared to their US peers. With both sides of a well-rounded portfolio (stocks and bonds) currently challenged by high prices and low yields, foreign equities have emerged as a key diversification tool.

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Fixed income

Following an active September, two IPOs are scheduled to raise $200 million in the week ahead.

Several companies could join the IPO calendar early in the week, such as Spruce Biosciences (SPRB), Shattuck Labs (STTK), and Kronos Bio (KRON).

Live TV streaming platform fuboTV (FUBO) plans to raise $150 million at a $1.4 billion market cap. Launched in 2015, fuboTV offers subscribers access to live sporting events annually as well as leading news and entertainment content through streaming devices. Fast-growing and highly unprofitable, fuboTV had over 300,000 paid subscribers in 2019. The company is currently listed on the OTCQB under the symbol FUBO.  

Commercial-stage regenerative medical product maker Aziyo Biologics (AZYO) plans to raise $50 million at a $177 million market cap. Through its proprietary tissue processing platforms, the company has developed a portfolio of advanced regenerative medical products designed to be similar to natural biological material. While gross margin increased in the 1H20, revenue declined and losses widened.

U.S. IPO Calendar
Issuer
Business
Deal Size
Market Cap
Price Range
Shares Filed
Top
Bookrunners
Aziyo Biologics (AZYO)
Silver Spring, MD
$50M
$177M
$16 – $18
2,941,176
Piper Sandler
Cowen
Makes regenerative medical products for various tissue types.
fuboTV (FUBO)
New York, NY
$150M
$1,374M
$9 – $11
15,000,000
Evercore ISI
BMO
Offers a live TV sports-first streaming platform under the name fuboTV.

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Street research is expected for Lightspeed POS (LSPD) on Tuesday, 10/06.

Lock-up periods will be expiring for Keros Therapeutics (KROS) on Monday, 10/5, and Inventiva (IVA) on Thursday, 10/8.

Renaissance Capital recently released its Quarterly Reviews for the US and Global IPO markets, exploring the third quarter’s record-breaking activity,