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

Global markets experienced a dynamic start to the year, marked by robust US economic data and geopolitical tension. Employment data continued to be strong as payrolls came in above expectations and the unemployment rate dropped. Core inflation also came in below expectations as shelter costs cool. The S&P 500 delivered a solid 2.8% monthly return even with the threat of substantial tariffs on imports from Canada, Mexico, and China. In the technology sector, Chinese AI startup DeepSeek introduced a cost-effective model that challenges major competitors, contributing to a slight tech industry sell-off. European equities demonstrated resilience, even amid Eurozone economic stagnation and the ECB (among other central banks) chose to continue to cut rates in January. The Federal Reserve, however, elected to keep their benchmark rate unchanged at 4.25-4.5% even with pressure from the White House to lower rates. Chair Powell reiterated that the Fed would remain apolitical as they continue to focus on bringing inflation down to more normal levels.