Category: insight
3 Min read | June 20, 2024

Market Monitor May 2024

  • Commentary
  • Market Outlook
Close-up of stock price graphs on a computer screen.

Summary:

Equities continue the rally, but economic paths diverge

Highlights

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Greater scope for Europe and Canada to catch up on growth

Since the pandemic, the U.S. has been exceptionally strong, diverging from the rest of the developed markets in economic growth trajectories as other countries including Canada, have lagged behind. However, the tides may be turning as the U.S. slows and other countries catch up on growth.

 

Central bank policies diverge

In addition to the increasingly divergent path of regional economies, the inflation trajectories in the U.S., Canada and Euro area are also causing central bank policy responses to be less synchronized.

 

Strong earnings of mega-cap companies lead to highest market concentration

78% of S&P 500 companies reported Q1 results that exceeded consensus estimates. The S&P 500 reported earnings growth of 6.0%, the highest year-over-year since Q1 of 2022.

 

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