The Concentration Conundrum
Enthusiasm for Artificial Intelligence (AI) once again powered the broad market higher last quarter, as the S&P 500 generated solid gains. By market capitalization, large caps outperformed small caps in Q2, as they did in the first quarter of 2024. On a sector level, performance was decidedly mixed. Five of the 11 S&P 500 sectors finished the second quarter with positive returns, led by Information Technology and Communication Services. Utilities also logged modest gains with both Consumer categories rounding out the list. All other market sectors declined to varying degrees during the quarter, reflecting investor concerns over potentially slowing US and global economic growth.
