Growth stock outperformance extended into the second quarter of 2024 as the economy remained resilient and investors favoured companies that were generating growth at above-average rates. The technology sector posted moderate gains, driven by solid fundamentals and a stable macro environment.
The enthusiasm around artificial intelligence (AI) remained a key contributor to strong performance of the Magnificent Seven, which accounted for nearly half of the global stock market return in the first half of the year. But divergence is building within the cohort in terms of fundamentals and performance, with continued moderation expected.
