Large-cap equities recover from sell-off with S&P 500 up in 4th straight month

Large-cap stock indexes generally rose in August, with the S&P 500 registering its fourth straight month of gains after recovering from a wide-ranging sell-off.

The S&P 500 gained 2.3% during the month following a positive July. The Dow Jones Industrial Average gained 1.8%, while the small-cap Russell 2000 fell 1.6% in a reversal of a recent outsized rally.

Equities hit a rough patch in late July and early August as concerns about a recession and the unwinding of the yen carry trade contributed to broad declines. Market volatility has since receded as stocks recovered from the downturn and appear poised for a further bull run.

Sector performance

All but two of the 11 S&P 500 sectors rose during the month.

The consumer staples sector performed the best at 5.8%. All but 10 of the sector's 38 stocks rose during the month, with double-digit gains for Kellanova, Kenvue Inc., The Clorox Co. and Walmart Inc.

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Meanwhile, the energy sector fell 2.3%, the largest drop of any sector. Of the 22 energy stocks in the S&P 500, all but eight fell during the month, with Halliburton Co. and Hess Corp. each dropping by more than 10%. The sector's two largest stocks, Exxon Mobil Corp. and Chevron Corp., also fell by 0.6% and 7.8%, respectively.

Largest gains, drops

Kellanova was the best-performing S&P 500 stock in August, with a 38.6% rise. Shares in the snack-maker rose throughout the month, first on earnings and raised fiscal year sales guidance, followed by a further boost on news of a takeover by privately held food company Mars Inc.

Meanwhile, Super Micro Computer Inc. performed the worst, as shares fell by 37.6%. Shares in the company fell throughout the month after it was targeted by a short seller and Super Micro disclosed it would not file its audited annual report for the most recent fiscal year on time.