Insights

Mega-cap technology companies continued to drive the equity market to record highs during the second quarter as enthusiasm for artificial intelligence and expectations for lower interest rates overshadowed concerns over softening economic data.

After ending 2023 on a high note, the market continued its advance in the first quarter against the backdrop of strong economic data and corporate earnings that surpassed expectations.

As we head into 2024, it’s noteworthy just how much sentiment has changed compared to this time last year. The labor market continued to add jobs and consumer spending remained surprisingly resilient in the face of higher prices, all while inflation continued its downward trend.

After a strong first half of the year, financial markets took a breather in the third quarter as restrictive monetary policy, combined with a still-robust economy, put upward pressure on bond yields and downward pressure on stock prices.