Quarterly market outlook - 2nd Quarter, 2024
Our investment strategists provide the Edward Jones perspective on the latest economic activity and what it may mean for investors.
The Quarterly Market Outlook provides investors with our perspective on recent activity in the capital markets. The Edward Jones Investment Policy Committee offers its viewpoints on the U.S. economy, equities, the bond market, international markets and asset classes, as well as a special topic of interest to investors each quarter.
These aren’t short-term predictions. Rather, this is Edward Jones’ perspective on market and economic topics designed to help you make decisions affecting your long-term financial strategy. As you read through each topic, you'll find specific actions you can discuss with your financial advisor.
Looking back at the 1st quarter
Equity markets picked up where they left off in 2023, continuing their trend higher while higher bond yields pressured investment-grade bond returns.
Economic outlook
Imminent recession risks have faded, though the economy has lost some momentum recently. We think the expansion can continue, but consumers face some fatigue amid still-high interest rates and some softness in the labour market.
Equity outlook
Stock markets continued to rally in the first quarter of 2024, with the TSX up by around 6% and the S&P 500 higher by nearly 10%. Underneath the surface, we have started to see some broadening of market leadership alongside U.S. mega-cap technology stocks.
Fixed-income outlook
Yields have risen in recent months, driven in part by the slowing pace that inflation is declining. We expect the Bank of Canada and Federal Reserve to start cutting rates soon, which should drive short-term rates lower, steepening both yield curves.
International outlook
U.S. equity markets continued to outperform domestic and overseas stocks through the first quarter, but leadership is starting to broaden with several global markets hitting fresh record highs. While the U.S. will likely maintain its economic and earnings growth advantage, easier central bank policy in the months ahead brighten the overseas outlook.
U.S. presidential elections & the markets: How do markets fare?
The 2024 U.S. presidential election will likely grab investors attention as uncertainty stemming from its outcome could spur bouts of volatility in markets.
Strategic asset allocation guidance
Our Strategic Asset Allocation represents our view of balanced diversification for the fixed income and equity portions of a well-diversified portfolio based on our outlook for the economy and markets over the next 30 years.
Quarterly market outlook - Full report from Edward Jones
Download the entire quarterly market outlook report here.