Market Overview: Strong Performance Across Major Indices in 2024
As is well known, at SIA, time is largely spent in a relative world, where powerful AI is constantly scanning for differentials. Once scanned by SIA practitioners, these insights allow them to glean valuable market intelligence. With the new year approaching, the next few weeks will be dedicated to summing up market activity for 2024 from various perspectives, including an absolute return view, to both evaluate past performance and set the stage for 2025 for advisors. By all equity accounts, 2024 has been a standout year, with the broad S&P 500 Index up 27.56% YTD, the larger cap-weighted S&P 100 Index up 32.90% YTD, and the NASDAQ Composite slightly ahead at 33.47%. Smaller cap stocks, measured by the Russell 2000 Index, are up 16.99%, with broader participation picking up later in the year, catching up to the mega-cap stocks. For ultra-large cap stocks, the Roundhill Magnificent 7 ETF (MAGS) has surged 70.82%, driving much of the US market rally, though this trend appears to be broadening, as discussed in previous editions of SIA Equity Leaders Weekly.
In Canada, the S&P TSX Composite Index has gained 22.42%, while the S&P/TSX 60 Index, representing the largest companies, is up 21.72%. Mid and small cap stocks in Canada have fared slightly better, with the S&P/TSX Mid Cap Index at 25.45% and the S&P/TSX Small Cap Index at 20.67%. Fixed income has lagged, with the CBOE Bonds 5, 10, and 30 Year indices showing YTD returns of 7.66%, 10.48%, and 11.45%, respectively, with most gains coming in the last quarter as the Federal Reserve eased its tightening cycle in favor of lower interest rates.
Sector Performance: Key Insights from SIA’s Market Sector Report
In addition, some sectors have shown quarterly returns surpassing their YTD numbers, highlighted by a green (>) sign. Notable examples include SIA Specialty Retail, which delivered 18.56% in the last quarter, surpassing the YTD return of 15.01%, and SIA Consumer Durables with a quarterly return of 14.57%, nearly doubling its YTD figure of 8.60%. A standout since the US election has been the SIA Automotive Equal Weight Index, which posted a quarterly return of 9.64% after a YTD decline of -10.55%, highlighted with a green box at the bottom of the table.
On the cautionary side, the SIA Aerospace and Defence Equal Weight Index has seen resistance since the US election. Despite a strong YTD return of 18.58%, its performance has waned, with many constituents under pressure, necessitating potential reevaluation. The performance of Leidos (LDOS) will be reviewed in today's stock report, with GE Aerospace covered in the coming days.
SIA ETF Country Heatmap (2024 YTD Performance)
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.