As was widely expected, the Federal Reserve Bank (the “Fed”) cut its benchmark interest rate during Q3 by 50 basis points. This cut marked the first downward adjustment since rates were lowered during the COVID crisis (1Q 2020).

The 2nd quarter of 2024 saw continued momentum in large cap technology – driven in large part by Nvidia. While the technology sector (XLK) led the way, more than half of the sectors within the S&P 500 were negative on the quarter.

The U.S. stock market began the year how it ended 2023, with a steady climb upward absent any material pullbacks. In January and March, Federal Reserve Bank (“Fed”) minutes, along with public comments from Jerome Powell and others, confirmed that additional rate hikes were unlikely and that rate reductions were the probable next move.