Market snapshot

By: David Beniaminov and Michelle Cluver

U.S. equities continued their rise in January, with the S&P 500 Index rising +1.7% as the soft-landing narrative continued to dominate market sentiment. Markets were supported by better than expected Q4 2023 GDP growth, strong December retail sales figures, and a softer but still robust labor market.

Market breadth narrowed again, supporting large cap growth. The Russell 1000 Growth Index rose +2.5% while the Russell 2000 Growth and Value Indexes fell -3.2% and -4.5%, respectively. Sector performance was mixed, with Communication Services and Information Technology pushing higher +5.0% and +3.9%, while Real Estate and Materials decreased -4.7% and -3.9%, respectively.

The 10-Year Treasury yield peaked at 4.18% as markets pushed back interest rate cut expectations. However, earnings weakness in select regional banks raised concerns about commercial real estate, putting downward pressure on Treasury yields at the end of January. The 10-Year Treasury yield ended the month at 3.91%, essentially unchanged.

Global equities lagged and emerging markets (EM) felt pressure from a stronger dollar. Within EM, China continued to weigh on performance.

Originally Posted February 7th, 2024, GlobalX 

PHOTO CREDIT: https://www.shutterstock.com/g/HTWE

Via SHUTTERSTOCK

Footnotes:

All data sourced from Bloomberg as of January 31st, 2024.

Disclosure

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Index returns are for illustrative purposes only and do not represent actual fund performance. Indices are unmanaged and do not include the effect of fees, expenses or sales
charges. One cannot invest directly in an index. Past performance does not guarantee future results.

This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information is not intended to be individual or personalized investment or tax advice and should not be used for trading purposes. Please consult a financial advisor or tax professional for more information regarding your investment and/or tax situation.