Fiera US SMID Cap Growth Q3 2024 Commentary
Equity returns were strong in the third quarter with a notable divergence in returns from smaller capitalisation companies relative to the mega cap peers. This past quarter saw the technology dominated Nasdaq index return 2.7% while the Russell 2000 Growth index returned 8.4%.
This is a sharp rebound from the second quarter when the smaller indices lagged the larger benchmark returns. However, for the year, the larger indices are outperforming the smaller indices by a substantial margin.
For instance, the Russell 1000 Growth (+24.5%), the Nasdaq Composite (+21.8%) and the S&P 500 (+22.1%) are performing exceptionally well vs. the Russell 2000 Growth (+13.2%).
Although a higher concentration of return is attributable to the Magnificent 7 stocks (Apple, Nvidia, Amazon, Meta, Google, Netflix and Tesla), there are initial signs of broader strength in other segments of the market.
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