June 10, 2024 Market Moment

Market Moment

Glen Eagle®: America’s Women-Owned Trading Desk®

6/10/2024

The Nvidia story continues with the stock reaching $3 trillion in market value, and along with Apple and Microsoft, these companies now represent over 20% of the S&P 500. This is the highest concentration of top companies in the index since at least 1980. 1
US government debt held by the public rose from 76% of GDP in 2017 to 97% in December. Yields on 10-year US Treasury bonds increased from 2.4% in 2017 to 4.3%, and annual net interest payments for the federal government jumped from $263 billion to a projected $890 billion, surpassing the Defense Department budget. 2
Employers added 2.75 million jobs in the past 12 months, including 272,000 in May. The unemployment rate has been at or below 4% for 30 months, a rarity since the late 1960s. However, hiring rates have been declining and are close to levels last seen seven years ago. 3
Historically, the S&P 500 gains about 8% in presidential election years, averaging over 12% when an incumbent president runs. 19 of 23 election years (83%) provided positive performance. The market tends to rise after conventions, leading up to the November elections and year-end. *4

Sources:

Barrons - "Nvidia's $3 Trillion Value Shows the Power of Momentum"
Bloomberg - "Trump Tax Cut Renewal Is Winning Wall Street, But Could Cost $4.6 Trillion"
WSJ – “Why the Recession Still Isn't Here"
Barrons – “Trump Tax Cuts Expire Next Year. Investors, Pay Attention."

*Past performance is not indicative of future performance

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This desk commentary is for informational purposes only

Carol Ann Fernandez, Rob Michel, Grier Vacek

(609) 631-8231

www.gleneagleadv.com

Glen Eagle Wealth, LLC | 4422C Route 27, PO Box 399, Kingston, NJ 08528-0399

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