Allspring Common Stock Fund Q4 2024 Commentary

2025-02-20 08:45:00 ET

Summary

• The Allspring Common Stock Fund underperformed the Russell 2500 Index during the three-month period that ended December 31, 2024.
• Stocks within the health care and information technology (IT) sectors were additive to relative performance.
• Stocks within the materials, real estate, and industrials sectors impeded relative performance.

FUND STRATEGY

Market review

Fourth quarter was characterized by expectations of Federal Reserve (Fed) rate cuts, the results of the U.S. presidential election, and a revival of mega-cap technology stocks. For the quarter, the S&P 500 Index ( SP500 , SPX ) returned 2.41% while the Russell 2000 Index ( RTY ) returned 0.33%, as small-cap equities once again lagged large-cap peers. Mid-cap stocks, as measured by the Russell Midcap Index, returned 0.62%. Despite the rate cuts, the 10-year U.S. Treasury yield ( US10Y ) increased 79 basis points (bps; 100 bps equal 1.00%) to 4.58% and the U.S. dollar maintained its strength, benefiting from the strong performance of the U.S. economy. U.S. markets initially reacted positively to the election, with expectations resulting in both the S&P 500 Index’s and Russell 2000 Index’s top-performing months for the year and then giving back some of the gains in December....

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