PAS Weekly Commentary

Mega Caps Lead S&P 500, Nasdaq to Fresh All-time Highs

The major indices logged gains this week largely thanks to mega cap stocks outperforming their smaller peers.

Still, the broader market showed nice resilience to selling efforts. The equal-weighted S&P 500 declined 0.7%  versus a 1.3% gain in the market-cap weighted index. The S&P 500 and Nasdaq Composite each logged a fresh all-time high this week.

NVIDIA was a standout from the spaces, topping a $3 trillion market value on a closing basis for the first time ever this week.

The strength in semiconductor stocks and mega caps boosted the S&P 500 information technology (+3.8%), consumer discretionary (+1.5%), and communication services (+1.7%) sectors to solid gains this week. Meanwhile, the utilities (-3.9%) and energy (-3.5%) sectors logged the largest declines.

Concerns about economic growth kept the broader market in check in response to this week's economic data. The ISM Manufacturing Index for May reflected a faster pace of contraction than the market expected, job openings decreased in April compared to March, and the May Employment Situation Report showed higher than expected earnings growth.

Treasury yields settled lower in response to the data and in response to the first rate cut by the ECB since September 2019. The 10-yr note yield settled eight basis points lower this week to 4.43% and the 2-yr note yield declined two basis points to 4.87%.

  • S&P 500: +1.3% for the week /+12.1% YTD
  • Nasdaq Composite: +2.4% for the week /+14.1% YTD
  • S&P Midcap 400: -2.1% for the week /+5.0% YTD
  • Dow Jones Industrial Average: +0.3% for the week / +2.9% YTD
  • Russell 2000: -2.1% for the week / UNCH YTD

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Past performance is not a guarantee of future results. Indices are unmanaged and one cannot invest directly in an index. Diversification does not guarantee investment returns and does not eliminate the risk of loss.

Data and rates used were indicative of market conditions as of the date shown and compiled by Briefing.com. Opinions, estimates, forecasts, and statements of financial market trends are based on current market conditions and are subject to change without notice. References to specific securities, asset classes and financial markets are for illustrative purposes only and do not constitute a solicitation, offer, or recommendation to purchase or sell a security. S&P 500 Index is a market index generally considered representative of the stock market as a whole. The index focuses on the large-cap segment of the U.S. equities market. Each company’s security affects the index in proportion to its market value. NASDAQ Composite Index is a market value-weighted index that measures all NASDAQ domestic and non-U.S. based common stocks listed on the NASDAQ stock market. Dow Jones Industrial Average is a widely used indicator of the overall condition of the stock market, a price-weighted average of 30 actively traded blue chip stocks, primarily industrials, but also includes financial, leisure and other service-oriented firms. Russell 2000 Index measures the performance of the smallest 2,000 companies in the Russell 3000 Index of the 3,000 largest U.S. companies in terms of market capitalization. MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.

Park Avenue Securities LLC (PAS) is a wholly owned subsidiary of The Guardian Life Insurance Company of America (Guardian). PAS is a registered broker/dealer offering competitive investment products, as well as a registered investment advisor offering financial planning and investment advisory services. PAS is a member of FINRA and SIPC.

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2024-176351 (Exp. 9/24)

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