| Index | Second Quarter 2023 | Year To-Date 2023 |
| S&P 500 | 8.3% | 15.9% |
| Dow Jones Industrial Average | 3.4% | 3.8% |
| Russell 2000 | 4.8% | 7.2% |
| MSCI All Country World Index ETF | 2.6% | 10.0% |
| Barclays Aggregate Bond | -0.9% | 2.3% |
Performance Source: Koyfin Price Performance, not Total Return
The S&P 500, an index of large U.S. companies, posted a total return of 8.3% for the Second Quarter of 2023. U.S. stocks significantly outperformed international for the quarter as measured by the iShares MSCI ACWI ex-US ETF, a representation of international stocks outside the U.S. The International ETF return for the Second Quarter of 2023 was 2.6%.
Talk of another rate hike in the future drove the U.S. dollar higher. When the dollar rises, stocks with foreign home currencies tend to fall, as their value naturally falls in relation to the dollar. International stock valuations remain attractive.
Brazilian stocks rose strongly in June on the prospect that Bolsonaro is banned from running for office. Chinese stocks struggled in the quarter, as economic growth opportunities turned murky.
U.S. Sectors
Top performing U.S. S&P 500 sectors as reported by Koyfin for the Second Quarter of 2023 include Technology (15.4%), Consumer Discretionary (13.8%) and Communications (12.5%). Laggards for the Second Quarter include Utilities (-2.6%), Energy (-1.1%) and Consumer Staples (0.0%).
Growth-oriented technology and consumer discretionary stocks have benefited from better than expected consumer spending. The employment environment remains strong. At the beginning of the year, a recession was expected by this time of year. The lack of this materialization is benefiting more growth oriented sectors.
The Federal Reserve paused interest rate hikes in June. However, they did not rule out the possibility of further hikes. This possibility put renewed pressure on income oriented sectors, like utilities and energy.