Quarterly Investment Update - 2nd Quarter 2023

Stock Market Commentary

U.S. stocks kept up their rally in the second quarter of 2023, with the S&P 500 returning 8.7% as earnings continued to surprise to the upside despite higher interest rates and ongoing inflation. Though not up as much as markets in the U.S., international markets and emerging markets also showed gains, posting 3.2% and 0.9% returns, respectively.

Technology stocks were the top-performing sector in the S&P 500 in the quarter, returning 17.2% as excitement over artificial intelligence drove chip stocks to triple-digit returns for the year. Through May, just seven large tech and consumer discretionary stocks accounted for most of the market returns in the S&P 500, with the other 493 constituents averaging a negative return year-to-date. In June, the rally broadened out, but just 20% of stocks were beating the S&P 500 returns. Energy stocks were the worst performers in the quarter, falling 0.9% as the price of oil steadily declined.