Standard & Poor's reported that all nine U.S. investment styles posted negative returns in July as rising volatility in the U.S. equity market, coupled with deepening liquidity and quality fears, drove stocks lower during the month.



According to Standard & Poor's, the average large-cap stock (as determined by the S&P 500) fell 3.10%, the average mid-cap stock (as determined by the S&P MidCap 400) lost 4.30%, and the average small-cap stock (as determined by the S&P SmallCap 600) dropped 5.04%. Industrials (+0.48%) and Energy (+0.40%) were the only sectors within the S&P Composite 1500 (an index comprised of the S&P 500, S&P MidCap 400 and S&P SmallCap 600) to post positive returns in July. The worst performing sector for the month was Financials, which lost 8.10%.

"July was not kind to equity investors. However, year-to-date, all three benchmarks and eight of the 10 sectors are still in the black, with Energy, Industrials, Materials, and Telecom Services showing double-digit advances," notes Sam Stovall, Chief Investment Strategist of Standard & Poor's Equity Research Services. "While August does mark the beginning of a seasonally weak period, S&P's Equity Strategy Group believes we are in the midst of a pullback, poised for a correction, but not likely to enter into a new bear market. The difference between these terms is a matter of percentages."

Year-to-date, however, the three major investment styles continue to show positive returns with the S&P MidCap 400 gaining 7.15%, the S&P 500 rising 3.64%, and the S&P SmallCap 600 increasing 3.07%. The best performing investment style over the first seven months of the year continues to be mid- cap growth as the S&P MidCap 400/Citigroup Growth Index has gained 9.33% through July.