1st Quarter 2024 Market Commentary: Equity Trends and Tech Sector Insights

Tech Giants Lead Q1 Equity Market Surge

Equity markets continued to rally through the first quarter. The ‘Magnificent Seven’ (Microsoft, Apple, Alphabet, Amazon.com, Meta, Tesla, and NVIDIA) outperformed the rest of the S&P 500, but primarily due to NVIDIA’s 83% return and the 37% return of Meta. Apple and Tesla declined, while Alphabet’s 8.0% return underperformed the index. US small cap and foreign equities performed reasonably well but lagged the S&P 500. Technology continued to drive returns outside the US, led by semiconductor names such as Taiwan Semi and Dutch equipment maker ASML. China’s equity markets declined, but their -2.3% year-to-date return masks a significant draw-down and recovery during the quarter, reflecting an improving outlook.

The American economy is characterized by a unique capacity to absorb and take advantage of new technologies. – Robert J. Gordon

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