The S&P 500 has continued its steady ascent that started at the end of last October, finishing the first quarter up about 27% on a price basis since then, and about 10% year-to-date. In 2023 only three sectors outperformed the S&P 500, and by wide margins, but the rally has broadened considerably. In 2024 several more have outperformed or are at least inline, and the dispersion of sector returns is significantly lower. After all the attention paid to the leadership concentration in last year’s S&P 500 returns, the index has succeeded despite year-to-date drops of 11% drop in Apple and a 29% in Tesla. The meaningful increase in the yields of the 2-yr and 10-yr Treasurys during the first quarter might have been expected to be a headwind to equity valuations, but much of the recent price gains are attributable to multiple expansion.

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