Market Comments

We entered the third quarter amidst tariff uncertainties and concerns for a slowing economy. The economy has remained resilient, with quarterly GDP growth exceeding 3%.

The quarter began with “Liberation Day” tariffs which sent markets tumbling.

After six consecutive quarterly gains, the S&P 500 index declined 4.3% and the NASDAQ index dropped 10.3% in this year’s first quarter.

Despite a soft December, the U.S. equity markets closed the fourth quarter with a solid 2.4% gain. The benchmark S&P 500 generated a 25% return for the year.

The third quarter saw continued strength in financial asset returns, as economic data continued to show stable employment and gross domestic product growth amidst a slow, steady decline in reported inflation.

Driven by the insatiable investor demand for all things relating to Artificial Intelligence (AI), the S&P 500 index posted a solid second quarter and finished the first half of the year up 15.3%

The U.S. equity markets extended the late 2023 rally through 2024’s first quarter.

Federal Reserve Bank interest rate policy continued to have a disproportionate impact on the U.S. stock market over the final quarter of 2023.

Federal Reserve Bank interest rate policy continued to meaningfully impact the U.S. equities markets.

During the first half of 2023, the broad stock market indexes regained most, but not all, of the losses experienced in calendar 2022.