Fiera US SMID Cap Growth Q3 2024 Commentary
Equity returns were strong in the third quarter with a notable divergence in returns from smaller capitalisation companies relative to the mega cap peers. This past quarter saw the technology dominated Nasdaq index return 2.7% while the Russell 2000 Growth index returned 8.4%.
This is a sharp rebound from the second quarter when the smaller indices lagged the larger benchmark returns. However, for the year, the larger indices are outperforming the smaller indices by a substantial margin.
For instance, the Russell 1000 Growth (+24.5%), the Nasdaq Composite (+21.8%) and the S&P 500 (+22.1%) are performing exceptionally well vs. the Russell 2000 Growth (+13.2%).
Although a higher concentration of return is attributable to the Magnificent 7 stocks (Apple, Nvidia, Amazon, Meta, Google, Netflix and Tesla), there are initial signs of broader strength in other segments of the market.
Disclosures
Equity returns were strong in the third quarter with a notable divergence in returns from smaller capitalisation companies relative to the mega cap peers. This past quarter saw the technology dominated Nasdaq index return 2.7% while the Russell 2000 Growth index returned 8.4%.
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