Investment Committee Commentary

Tech Resiliency Masks Underlying Market Divergence

Equity markets delivered a split performance in September. The S&P 500 slipped 0.5% for the month, while the tech-heavy Nasdaq gained 1.9%. After three quarters we are on the verge of another year of double-digit gains with the S&P 500 up 11.8% and Nasdaq at 15.6%. As of this writing in the first week of October, the S&P 500 and Nasdaq are trading at all-time highs. Headline index numbers masked significant weakness across the broader market. Small-cap stocks dropped 5.3% and 83% of S&P 500 components traded down more than 10% from their 52-week highs in September, according to Bloomberg. Sector performance highlights this narrow leadership. Communication Services, led by Meta and Alphabet, along with Information Technology, were the only

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