U.S. markets delivered mixed results in the second quarter. Large cap stocks climbed 4.3% while small cap stocks declined by 3.3%. Bonds ended the quarter up 0.1%.
Despite market and Fed expectations for at least one interest rate cut this year, U.S. inflation remains above the Federal Reserve’s 2% target.
A handful of mega-cap technology stocks have contributed to most of the S&P 500’s year
-to-date gains as market breadth remains narrow and tech sector valuations are at the high end of historical ranges.
The fiscal situation remains precarious, as evidenced by a notable lack of fiscal responsibility in the recent presidential debate, which suggests a persistent lack of budgeting restraint.
Despite these concerns, slowing growth and inflation appear enough to keep the bond market content, and yields remain relatively contained—at least for now.
2Q 2024 Commentary: Status Quo
Summary
-to-date gains as market breadth remains narrow and tech sector valuations are at the high end of historical ranges.
Read and download the commentary here.
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