SVB Asset Management's second quarter 2024 report highlights the economic and market factors affecting global markets and business health. The Federal Open Market Committee (FOMC) held the fed funds rate steady at its March 2024 meeting, with inflation expected to be on a bumpy road back to 2%. The FOMC's Summary of Economic Projections (SEP) revised its 2024 economic expectations for Core Personal Consumption Expenditure (PCE) from 2.4% to 2.6%. The bond market's performance was mixed, with shorter-duration strategies benefiting from reduced expectations for rate cuts, while longer-duration strategies faced challenges from the market's repricing of the Fed's actions. The equity market did well in Q1 2024, with the S&P 500 reaching a record high, while other indices also rose, fueled by indications of potential rate cuts by the central banks. Leveraging the previous year's positive momentum, the S&P 500 reached a record high, while other indices also rose, fueled by indications of potential rate cuts by the central banks. High-carry currencies, commodities and cryptocurrencies outperformed, with rate hikes no longer anticipated and the economy proving resilient, reflation assets (i.e., bitcoin, gold, natural gas) have bounced back from cycle lows.
