Helping you navigate the market's twists and turns.

Large-cap growth stocks were the one pocket of strength in September as most other areas of the market declined. Small caps struggled the most as investors worried that higher rates could impact smaller companies more acutely as these businesses tend to raise capital more frequently than larger companies; therefore, rising rates hurt – a classic Wall Street trade.

Large-cap growth stocks improved in August after lagging most of the year. The on-again, off-again nature of the Iran conflict has created volatility, and elevated interest rates are also keeping pressure on stocks.

Large-cap growth stocks have been under pressure in recent months as the market has been scrutinizing the massive spending on the AI buildout.

The character of the rally changed in June, but overall, the second quarter results were strong. After a rather narrow rally from the March lows that large-cap growth and tech stocks led once again, some rotation occurred in June with small caps and value stocks leading the way.

Stocks continued to rally in May following strong results in April but returns varied considerably by style. While the conflict with Iran is clearly not over, the market continued to respond positively to news that negotiations were taking place.

Saying equity markets recovered in April would be an understatement. After selling off sharply in March as the Iran conflict escalated, equities rallied in April as cease-fire talks progressed. While the conflict is clearly not over, the market reacted positively to steps in that direction and robust earnings with a strong rally in April. See Table 1 for April, Q1, and YTD returns.