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Jul 01, 2024

June 2024

Equities continued their positive streak in June to close out the first half of the year. The Dow Jones Industrial Average edged 1.2% higher in June, the S&P 500 advanced 3.6%, and the NASDAQ surged 6%. It was a much better month for large-caps; the Russell 1000 index gained 3.3% while the small-cap Russell 2000 index lost 0.9%.

Despite the broad index gains, only five of the eleven sectors contributed to the positive month for equities. The gains were largely led by Technology’s 7.8% increase, followed by Consumer Discretionary at 3.9% and Communication Services at 3.2%. On the opposite side of the spectrum, Utilities went from first to worst with a 5.6% decline.

Unemployment topped 4% for the first month since January 2022, and the labor force participation rate fell to 62.5%. Both new and existing home sales slipped in June, yet the U.S. median existing home sales price set another all-time high. Inflation continues to hover at the lower end of the 3-4% range, while core inflation logged another monthly decline.

Treasury yields dropped across the board with the exception of the 3-month T-Bill. The 5-year Treasury note endured the largest decline on the curve for the second straight month, shedding another 19 basis points. T-Bill instruments saw minimal movement. For the third straight month, the 2-year, 3-year, 10-year, 20-year, and 30-year all decreased by double-digit basis points.

Bond funds benefitted from added gains as a result of the lower yields. The iShares 20+ Year Treasury Bond ETF (TLT) advanced 1.81%, the largest increase of any bond fund tracked on our chart (below).

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