| Index | Second Quarter 2024 | Year To-Date 2024 |
| S&P 500 | 3.9% | 14.5% |
| Dow Jones Industrial Average | -1.7% | 3.8% |
| Russell 2000 | -3.9% | 0.8% |
| MSCI All Country World Index ex-US | 1.0% | 5.6% |
| Aggregate Bond | 0.1% | -0.6% |
Performance Source: Koyfin Price Return
U.S. Versus International
The S&P 500 Index, an index of large U.S. companies, posted a price return of 3.9% for the Second Quarter of 2024. Large U.S. stocks outperformed international for the quarter as measured by the iShares MSCI ACWI ex-US Index, a representation of international stocks outside the U.S. The International ETF return for the Second Quarter of 2024 was 1.0%.
Year-to-date the discrepancy between the U.S. centric S&P 500 Index and International stocks is quite high, with the S&P 500 Index up 14.5% versus 5.6% for international stocks. This discrepancy is high, however it isn’t as high as the gap between the S&P 500 and less growth centric Dow Jones Industrial Average U.S. Index and the Russell 2000 U.S. small cap stock index. The top six stocks in the S&P 500 Index now make up over 30% of the S&P 500 Index. These strong performers continue to dominate returns.
U.S. Sectors
Top performing U.S. S&P 500 sectors as reported by Koyfin Performance Software Price Return for the Second Quarter of 2024 include Technology (8.8%), Communications (5.2%) and Utilities (12.4%). Laggards for the Second Quarter include Materials (-4.5%), Industrials (-2.9%) and Energy (-2.7%).
Slowing inflation reports, solid earnings growth and flattening employment numbers contributed to optimism of a “goldilocks” scenario for the post-COVID price rises. As long as earnings and economic growth continue while inflation abates there is the potential to avoid a recession despite higher prices pressuring consumers.
The “goldilocks” scenario, ongoing economic growth despite higher interest rates designed to slow the economy, bodes well for growth oriented investments such as technology and communications. These sectors benefit because it is expected their growth trends can continue. Utility stocks also performed well, as expectations for more stable or falling interest rates increased.