General Market Commentary as of June 30, 2024
In the second quarter of 2024 US major indices posted mixed returns. The S&P 500 finished the quarter up
3.92%, the Dow Jones Industrial Average was down -1.73%, and the Nasdaq Composite increased 8.26%. In US
markets, the technology sector showed dominance as the largest contributor to return. Large caps
outperformed small caps, and value outperformed growth in those respective segments. Developed markets
outside the US posted negative returns. Emerging markets outperformed both US and Developed markets.
Interest rates generally increased in the US Treasury market during the quarter. Short-term US treasury bonds
returned +0.77% while intermediate-term US treasury bonds returned +0.58%. Short-term corporate bonds
returned +0.96% and intermediate-term corporate bonds returned +0.74%.
The Federal Funds Rate remains a main topic of conversation for markets. General consensus now expects one
rate cut by the Fed in 2024, a number that has been reduced from five at the beginning of 2024. In global
economies, the Bank of Canada made a 0.25% cut to key interest rates on June 5th, and on June 12th the
European Central Bank followed suit.
The US Bureau of Labor Statistics reported March inflation data on April 10th showing a seasonally-adjusted
0.4% increase in the Consumer Pricing Index, bringing the 12-month rate to 3.5%. The higher than anticipated
reading caused markets to slump in the beginning of the quarter. Further reports in May and June showed a
slowing of inflation which allowed markets to rebound and capture positive returns for the first half of the year.
Market Recap
| Tot Return | 3-MO* | 12-MO* | 3-Year* | 5-Year* | Closing Value |
|---|---|---|---|---|---|
| S&P 500 | 3.92% | 22.70% | 8.31% | 13.17% | 5,460.48 |
| Dow Jones Industrial Average | -1.73% | 13.69% | 4.27% | 8.02% | 39,118.86 |
| NASDAQ Composite | 8.26% | 28.61% | 6.93% | 17.24% | 17,732.60 |
Source: Morningstar. The S&P 500, Dow Jones Industrial Average, and NASDAQ Composite are unmanaged indexes. It is not possible to invest in an index. Past performance is no guarantee of future results. * Price only. Does not include dividends.
All overviews and commentary are intended to be general in nature and for current interest, educational purposes and factual reference only and are subject to change based on market and other conditions.
