In what was a turbulent month, US markets weathered significant economic headwinds with surprising resilience. The S&P 500 experienced a challenging month, with the Magnificent 7 stocks selling off nearly 9% and marking their worst performance since late 2022, yet remarkably the S&P 500 remained only 3% below its all-time high. Corporate earnings demonstrated strength, with the S&P 500 reporting 17.8% year-over-year earnings growth—the highest since Q4 2021—and slightly better-than-expected revenue growth of 5.3%. Economic indicators presented a mixed picture, with January payrolls adding 143,000 jobs while inflation exceeded expectations, prompting Federal Reserve Chair Jay Powell to signal continued cautious monetary policy. Rising negative sentiment, fueled by policy uncertainty and potential tariff impacts, could potentially dampen consumer spending and market confidence in the coming months.

As of mid-February, global markets are experiencing a rotation in leadership, with a more balanced rally across sectors. Developed Non-US equities driven by Europe are leading the way. While the S&P 500 is +4% YTD, leadership is no longer concentrated in just the Mega Cap Tech names, reflecting healthier market breadth.

Private markets have undergone a tremendous amount of structural change over the last several decades. 2024 brought these changes directly into the headlines. Select examples¹ include:  

• SpaceX Valuation Jumps to About $350 Billion in Insider Deal – Bloomberg 

• AI startup Databricks hits $62 billion valuation in record VC round – Reuters 

• OpenAI raises $6.6B and is now valued at $157B – TechCrunch