Market update, beginning of September 2024

In August, 2024 S&P 500 index recovered from a sharp loss. The extent to which mega-caps drive the US stock market has significantly reduced: from ~40% in the beginning of August to ~20% currently.

The StockMetrum index was below 50% during the whole August and was not able to signal the recent market recovery. We would give the following explanation:

• Market growth was primarily driven by the anticipated effect of future rate cuts;
• StockMetrum index is less sensitive to anticipated factors, than to actual financial performance;
• By design low values of the StockMetrum index mean that the future growth's signs are not robust and do not necessarily indicate a decline.

Publication date: 04/09/2024