Q1 2024 Market Review
Global stocks had an impressive start to the year, returning 8% in the first quarter.
Global stocks had an impressive start to the year, returning 8% in the first quarter. The prospect of an AI-driven productivity boom drove stocks higher, especially in the US, outweighing areas of uncertainty such as higher-for-longer interest rates and upcoming US elections. Japan made headlines as the Nikkei reached new record highs for the first time since 1989. And major US indices, including the Russell 3000 and S&P 500 Index, ended the quarter at all-time highs.
IT and Communication Services stocks led the stock market gains but it wasn’t concentrated in the “Magnificent 7” names that led the US market last year. While Nvidia, Microsoft, Meta and Amazon all contributed to market returns, both Apple and Tesla detracted. REITs were the only sector to post negative returns for the quarter, falling after a strong fourth quarter last year.
Globally, value stocks trailed growth stocks and small caps trailed large caps. However, profitability offered a ballast against these negative premiums, as stocks with higher profitability generally outperformed their lower profitability counterparts
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