Market Update

Highlights include:

• In the first six months of 2024, the S&P 500 Index of the largest U.S. companies increased 15%, the Nasdaq rose 17%, and the MSCI World Index climbed nearly 12%.¹
• There was a wide disparity between the top and bottom sector performers. The S&P 500 Information Technology and Communication Services sectors increased 28% and 26%, respectively, while the Real Estate sector fell 2%.
• This significant disparity was also present in small versus large companies, and growth versus value stocks.
• Only a few companies—especially those with exposure to generative artificial intelligence—drove the extraordinary growth in the S&P 500; 75% of companies within the S&P 500 underperformed the Index.
• The U.S. economic picture is largely positive: Inflation appears to be contained, the unemployment rate has remained low, and the Federal Reserve has kept its benchmark interest rate steady.

¹ Morningstar