SWS August Insights

Volatility arises as GDP beats expectations and Fed meets them

The second half of July was marked with a period of equity market volatility as a few high-profile earnings reports and future guidance disappointed investors and partially called into question the strength of the AI and cloud tech names that have helped drive the market higher this year. Some of the most watched stocks were down well over 10% at their worst point in July, with NVIDIA shedding over 23% of its market value at one point. However, a rally toward the end of the month helped dampen these drawdowns and allowed the S&P 500 to gain 1.22% in the month. Small caps blew past the S&P 500 in July, with the Russell 2000 gaining 10.16% on the back of a better-than-expected CPI report and solidifying expectations of a Federal Reserve rate cut in September

August 2024 Monthly Report.pdf

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