Market Commentary

In the past quarter, U.S. equities experienced notable fluctuations, with the S&P 500 achieving a 9.66% gain, buoyed by strong corporate earnings and easing inflation concerns. The market saw a shift as small-cap and value stocks began to outpace the previously dominant large-cap growth stocks, particularly in the technology sector. Despite initial concerns over persistent inflation and limited Federal Reserve rate cuts, investor sentiment improved as inflation data turned favourable, leading to expectations of rate reductions later in the year. This positive economic backdrop and robust earnings reports, particularly in sectors beyond the mega-cap tech companies, helped sustain market momentum.