Investment Review - June 2024
- The major U.S. indices all posted strong gains in the month of May, rebounding from the declines seen during April. The Nasdaq Composite increased 7.0%, the S&P 500 added 5.0%, and the Dow Jones Industrial Average rose 2.6%. A combination of strong corporate earnings, especially in the technology sector, and a decline in bond yields led to the positive returns.
- Corporate revenues and earnings came in better than expected in Q1. The S&P 500 posted Q1 revenue growth of 4.1% year-over-year and Q1 EPS growth of 8.4%. The healthy gains were driven by the “Magnificent-8” stocks (Alphabet, Amazon, Apple, Meta, Microsoft, Netflix, Nvidia, and Tesla). Without the strong growth of these eight stocks, S&P 500 Q1 revenues would have increased 3.9% and earnings 5.9%.
Key Investment Statistics
Sources: FactSet, Dow Jones Publishing, Bloomberg, Bureau of Labor Statistics, U.S. Federal Reserve, Yardeni Research, National Association of Realtors, Bureau of Economic Analysis, Atlanta Fed.
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