KRUS - Voya Small Cap Growth Strategy Q2 2024 Commentary
2024-07-23 10:00:00 ET
Summary
- Market performance was mixed during the quarter as investors navigated macro uncertainties. U.S. large cap growth was up while international, small caps and value lagged. The rally in U.S. growth was dominated by semiconductors, technology hardware and media and entertainment industries as the artificial intelligence trade once again led markets.
- Despite challenges, the U.S. economy remains resilient. Inflation remains a key focus, with the U.S. Federal Reserve holding interest rates steady to curb its impacts.
- Economic and Fed data continue to call for “status quo” equity positioning. However, we anticipate a regime shift as the market gains confidence in the next phase of Fed policy.
- Small cap growth stocks, as measured by the Russell 2000 Growth Index, were negative for the quarter. However, the valuation discrepancy of small cap growth stocks relative to large cap growth stocks remains a compelling data point that bodes well for the asset class.