July 10, 2024
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Investment Commentary
Major US equity indices put in a mixed performance in Q2, with the Dow falling (1.7%), while major performance contributions from some of the Magnificent 7 stocks helped drive the S&P and Nasdaq 3.9% and 8.3% higher, respectively. Many commentators aired concerns about market breadth as the official market cap-weighted S&P bested its equal-weight variant by nearly seven percentage points in the quarter. Not only has optimism about a broadening rally failed to materialize, but things seem to have moved in the opposite direction – while more than 78% of S&P constituents traded above their 50-day moving averages at the end of Q1, that proportion shrank to ~46% near the end of Q2.
