Quarterly market outlook - 3rd Quarter, 2024
Our investment strategists provide the Edward Jones perspective on the latest economic activity and what it may mean for investors.
The Quarterly Market Outlook provides investors with our perspective on recent activity in the capital markets. The Edward Jones Investment Policy Committee offers its viewpoints on the U.S. economy, equities, the bond market, international markets and asset classes, as well as a special topic of interest to investors each quarter.
These aren’t short-term predictions. Rather, this is Edward Jones’ perspective on market and economic topics designed to help you make decisions affecting your long-term financial strategy. As you read through each topic, you'll find specific actions you can discuss with your financial advisor.
Looking back at the first half
Stocks rallied in the first half of 2024, led by ongoing strength in mega-cap U.S. tech stocks. But investment-grade bond returns have been muted in the face of higher yields.
Economic outlook
The Canadian economy has emerged from a soft patch in the back-half of 2023 but continues to remain at or slightly below trend levels.
Equity outlook
The U.S. and Canadian stock market performance was mixed in Q2. The U.S. S&P 500 was up about 4%, driven by technology and artificial intelligence (AI) sectors, while the Canadian TSX was down about 1%, given its higher exposure to areas like financials and industrials.
Fixed-income outlook
Bond yields have dropped from the recent peak in late April as markets price in the recent Bank of Canada rate cut and expectations for additional cuts, benefiting bond prices, and driving stronger returns.
International outlook
Global growth has stayed resilient this year despite high borrowing costs, bolstered by U.S. strength. As major central banks start cutting rates to normalize policy, early signs of recovery outside the U.S. are starting to emerge.
U.S. election issues and implications
We believe several issues will be raised during the U.S. presidential campaign that connect to fundamental factors important to the economy and markets, including government debt, Federal Reserve (Fed) policy and trade.
Strategic asset allocation guidance
Our Strategic Asset Allocation represents our view of balanced diversification for the fixed income and equity portions of a well-diversified portfolio based on our outlook for the economy and markets over the next 30 years.
Quarterly market outlook - Full report from Edward Jones
Download the entire quarterly market outlook report here.