June 2024 Monthly Market Review

An excerpt from our June 2024 Monthly Market Review: 

Concentrated, overvalued, and AI-obsessed, the U.S. equity market extended its gains in June. NVIDIA, the chief object of the market’s obsession, roared further ahead, briefly capturing the crown of most highly capitalized U.S. company. In addition to the AI frenzy, U.S. equities were supported by declining U.S. bond yields. The Bank of Canada cut its policy rate by 25 basis points in June, becoming the first G-7 central bank to do so. The ECB soon followed, also cutting its policy rate by 25 basis points. Nevertheless, European equity markets fell after the call for a snap election in France. Emerging equities rose despite declines in the Chinese market as well as in Latin American bourses. Yields across the credit spectrum declined in June. Together with rising equity prices, falling yields and spreads have eased financial conditions, dampening the impact of the Fed’s tight policy stance. Oil prices rose strongly in June. The U.S. dollar’s gain was more muted.