The S&P 500, an index of large U.S. companies, posted a total return of -3.7% for the Third Quarter of 2023. Large U.S. stocks outperformed international for the quarter as measured by the iShares MSCI ACWI ex-US ETF, a representation of international stocks outside the U.S. The International ETF return for the Third Quarter of 2023 was -4.5%.
The ongoing possibility of another rate hike in the future drove the U.S. dollar higher. When the dollar rises stocks with foreign home currencies tend to fall, as their value naturally falls in relation to the dollar. International stock valuations remain attractive.
International stocks as a whole did not perform well due to the strengthening U.S. Dollar. South American countries, in particular, struggled for the quarter.