ACG’s January Capital Markets Review

January marked a strong beginning to the new year with markets rallying broadly as inflation slowed and investors saw a path to avoiding a deep recession.
The S&P 500 gained +6.28% for the month after a disappointing 2022.
The Consumer Discretionary (+15.02%) and Communication Services (+14.51%) sectors led the rally after poor relative performance last year.

Growth stocks regained a momentary upper hand on their Value counterparts for the month, with the Russell 1000 Growth gaining +8.33% compared to +5.18% for the Russell 1000 Value.
Developed International and Emerging Market equities continued to show resilience in the face of economic and geopolitical risks as the MSCI EAFE gained +8.10% and the MSCI Emerging Markets Index rose +7.90% in January.
Despite messaging from the U.S. Federal Reserve that more rate hikes would be necessary to conquer inflation, the 10-year Treasury yield fell during the month and credit spreads tightened. The Bloomberg Aggregate U.S. Bond Index finished the month up +3.08%.

Sources: Morningstar Direct, MSCI

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