It was another good quarter for the stock market with the S&P 500 reaching 31 record closes so far in 2024. Many investors see the promise of AI as a
transformative technology that could fuel leaps in productivity and growth. Meanwhile, slowing year over year wage growth & unemployment picking up helped contribute to lower inflation numbers. 

·       The companies in the S&P 500 index have added nearly $6 trillion in market capitalization so far this year, the largest first-half gain on record.[i]

·       The equal-weighted index is up just 4.1% so far this year, underperforming the S&P 500 by 10 percentage points—the biggest gap in the first half of a year in data going back to 1990, according to Dow Jones Market Data. [ii]

·       Nvidia shares soaring 149%, propelling the graphics-chip maker’s market value above $3 trillion and briefly making it the most valuable company in the world. Nvidia has contributed 30% of the S&P 500’s total return[iii]

·       Yields, which rise as prices fall, climbed for the second straight quarter and the eighth of the last 10. The 10-year U.S. Treasury yield climbed to 4.342%.[iv]

·       Analysts expect profits from companies in the S&P 500 to grow 11% this year, with every sector except energy and materials showing an increase, according to FactSet. Next year, they anticipate earnings will rise 14%, with the help of all 11 S&P 500 segments.[v]

·       The core Personal Consumption Expenditures Price Index, which excludes volatile energy and food prices, increased 2.6% from a year ago, slowing from April’s 2.8% pace.[vi]

·       The value of the median existing home rose to a record $419,300 in May, according to the National Association of Realtors. Before the pandemic, it was $270,000. A household earning $100,000 a year can only afford 37% of home listings today, according to the NAR. In a balanced market where there is around five months’ supply of inventory available the number should be 62%.[vii]

 

[1] https://www.wsj.com/finance/stocks/global-stocks-markets-dow-news-06-28-2024-37f9a5ae?mod=finance_lead_pos1  

ii https://www.wsj.com/finance/stocks/ai-frenzy-propels-stocks-to-monster-first-half-620229cc?page=1

iii https://www.wsj.com/finance/stocks/ai-frenzy-propels-stocks-to-monster-first-half-620229cc?page=1

iv https://www.wsj.com/finance/stocks/global-stocks-markets-dow-news-06-28-2024-37f9a5ae?mod=finance_lead_pos1

v https://www.wsj.com/finance/stocks/global-stocks-markets-dow-news-06-28-2024-37f9a5ae?mod=finance_lead_pos1

vi  https://www.wsj.com/economy/central-banking/slowing-u-s-inflation-fuels-expectations-of-interest-rate-cuts-71ec40a0?mod=economy_lead_pos1

vii https://www.wsj.com/economy/housing/americas-frozen-housing-market-is-warping-the-economy-35e4f0e5?mod=economy_lead_pos4

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