With a 0.6% return in September, the S&P locked in a 7.7% return for the third quarter of 2018, its best since the fourth quarter of 2013. As U.S. stocks, continued their run, EM stocks extended their losing streak, declining for their second straight month and the seventh of the last eight. After climbing six straight months for a total return of 20%, small cap stocks took a breather in September, declining more than 3%. After an exceptionally low August, U.S. equity volatility edged even lower in September. September was the calmest month so far in 2018 for the S&P 500. The Fed made its eighth rate hike in three years, raising the Fed funds rate target to 2.25%.