NEW YORK—U.S. mid-cap growth funds, emerging market stocks, and inflation-protected bonds were among the winners for U.S. investors in a turbulent third quarter that saw the benchmark S&P 500 hit a record high only to tumble at the end of September as rising Treasury yields and debt negotiations in Washington weighed on investor sentiment.
Growth funds investing in U.S. equities beat their value-focused peers in the quarter, as a COVID-19 resurgence over the summer bolstered the case for investors to shift back into some of the big technology names that led markets during last year’s coronavirus lockdowns, reviving the so-called stay-at-home trade. That move has reversed in recent weeks as Treasury yields shot higher.
