| Index | Third Quarter 2024 | Year To-Date 2024 |
| S&P 500 | 5.5% | 20.8% |
| Dow Jones Industrial Average | 8.2% | 12.3% |
| Russell 2000 | 9.2% | 10.0% |
| MSCI All Country World Index ex-US | 7.7% | 13.8% |
| Aggregate Bond | 5.2% | 4.6% |
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 5.5% for the Third Quarter of 2024. Large U.S. stocks underperformed 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 Third Quarter of 2024 was 7.7%.
Other major indices, including international stocks, made a little progress in closing the year-to-date performance gap versus the Standard and Poor’s 500 Index. The European Central Bank led the way with rate cuts, dropping the central bank target interest rate in June and again in September. Despite the June cut in interest rates, inflation continued to moderate and slowed to a three-year low of 2.2% in August. 2024 economic growth expectations remain muted, with an annual growth rate of 0.8% expected.
U.S. Sectors
Top performing U.S. S&P 500 sectors as reported by JPMorgan for the Third Quarter of 2024 include Utilities (19.4%), Real Estate (17.0%) and Industrials (11.5%). Laggards for the Third Quarter include Energy (-2.3%), Technology (1.6%) and Communications (1.7%).
Stock market breadth widened, improving stock performance beyond the large technology sector names that have dominated returns. Utilities and Real Estate stocks benefited from a drop in the Federal Reserve target interest rate. Utilities and Real Estate sector stocks are often seen as an alternative to bonds for generating income due to their high dividend yields. If bond yields are set to drop it makes these stocks more attractive.
Communications and Technology sector stocks have dominated returns most of 2024, up 27.8% and 29.6% year-to-date through third quarter respectively. These strong year-to-date returns include the weak third quarter showing. A breather for this ongoing strong performance was due.