Press release
Northern Trust Universe Data: Market Momentum Stalls as Inflation Concerns Persist in Q2
CHICAGO--(BUSINESS WIRE)-- Global equity market returns were subdued in the second quarter of 2024, a departure from the strong results observed in the first
About this update from Northern Trust Corporation
[{"type":"text","content":" CHICAGO--(BUSINESS WIRE)--\nGlobal equity market returns were subdued in the second quarter of 2024, a departure from the strong results observed in the first quarter, as global inflation remained a key area of concern. The median return for institutional asset owners included in the Northern Trust All Funds Over $100 million plan universe was 1.1% for the quarter ending June 30, 2024.\n\n\nThe Northern Trust Universe tracks the performance of 388 large U.S. institutional investment plans, with a combined asset value of more than $1.4 trillion, which subscribe to performance measurement services as part of Northern Trust's asset servicing offerings.\n\n\nThe Northern Trust Foundation and Endowment (F&E) universe produced a 1.3% median return in the second quarter, while the Northern Trust Public Funds universe median return was up 1.2% and the Northern Trust Corporate (ERISA) universe median return was flat, up only 0.01%.\n\n\n\"Institutional investors benefited from the equity market rally in the first half of the year, ahead of fiscal year-end for many plans on June 30,\" said John Turney, Global Head of Total Portfolio Solutions. \"However, as 2024 progresses, it’s clear investors remain focused on inflation as they await further rate cuts from the Fed.”\n\n\nU.S. equities posted mixed results during the quarter as investors favored growth companies tied to artificial intelligence, while materials and industrials fell due to inflation concerns. The Northern Trust U.S. Equity Program universe produced a 1.9% median return for the second quarter. Large cap stocks outperformed small cap stocks, with the Russell 2000 small cap index returning -3.3%, compared to the Russell 1000 large cap index which was up 3.6% for the period.\n\n\nThe Northern Trust U.S. Fixed Income program universe median return was up 0.3% for the quarter. The yield of the US Ten-Year Government Bond increased from 4.21% to 4.39% over the same period. Within the domestic market, bonds in the U.S. Government, Investment Grade, and High Yield categories posted positive returns, primarily due to declining bond prices.\n\n\nThe end of the second quarter, June 30, marks the conclusion of the fiscal year-end reporting cycle for numerous pension funds, foundations, and endowments within the Northern Trust universes.\n\n\nFoundations & Endowments universe median on...