5 Best Performing Stocks In September

However, the overall downtrend continued with prices falling on Sep 23 after a rise in oil prices was offset by large buildup in U.S. gasoline stocks. WTI prices, based on the front-month contracts, lost 8.4% for the month and were 24% lower for the quarter. Year to date, they’re down by more than 15%.

Biotech Stocks Tumble

Shares of biotech companies were slipping even before Hillary Clinton made her far reaching comments on the sector. Shares of healthcare companies fell sharply on Sep 21 after U.S. Democratic presidential hopeful Hillary Clinton said she will lay out a plan to restrict “price gouging” in the specialty drugs market.

Her announcement came in after she came across an article about a drug whose price was raised from $13.50 a tablet to $750.Hillary Clinton said that she will lay out a plan to restrict the price of prescription drugs to $250 a month.

Another massive sell-off in this sector dragged down iShares Nasdaq Biotechnology (IBB) by 4.9%. Moreover, the index registered a weekly loss of 13.2%, experiencing its worst weekly performance in seven years.

Biotech stocks continued as Democratic lawmakers made a push for a subpoena to force the company to turn over documents relating to “massive price increases” for two heart drugs it produces. Biotech stocks rebounded strongly on the last day of the month. The iShares Nasdaq Biotechnology (IBB) jumped 4.8%

FOMC Policy Statement

After concluding its two-day policy meeting, Fed decided to keep the short-term interest rate unchanged at near zero level. Sluggish global economic growth, increase in volatility in financial markets and low inflation level held the Fed back from hiking rates.

The Fed continues to wait for “further improvement in the labor market” and inflation to “rise to 2% in the medium term.” The Federal Open Market Committee (FOMC) said: “Recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure on inflation in the near term."

Though the Fed raised its outlook for economic growth for this year, it trimmed projections for 2016 and 2017. Meanwhile, it also said the unemployment rate will decline to 4.8% by next year and expects it to remain that low for nearly three years. The Fed also said that the inflation rate will reach the 2% target rate at a sluggish pace as headwinds including slow growth in import prices and low oil prices are likely to restrict inflation rate from hitting the target.

Fed Chair’s Comments on Rate Hike

Following the policy statement, the Fed chairwoman Janet Yellen had stated: “In light of the heightened uncertainties abroad and the slightly softer expected path for inflation, the committee judged it appropriate to wait for more evidence.”

However, Yellen indicated that the lift-off option is very much on the table later this year. She was also optimistic about the US economy. She said that FOMC members "expect that the various headwinds to economic growth ... will continue to fade, thereby boosting the economy's underlying strength."

She added: "Most FOMC participants, including myself, currently anticipate that achieving these conditions will likely entail an initial increase in the federal funds rate later this year, followed by a gradual pace of tightening thereafter."

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