After a rollercoaster 2022 and despite mixed earnings results, January was a rosy start to the new year, characterized by better-than-expected GDP growth, a slowing pace of inflation and expectations of reduced rate hikes by the Fed, with the S&P 500® up 6%, posting its best January performance since 2019. Smaller caps performed relatively better, with the S&P MidCap 400® and S&P SmallCap 600® both up 9%.
International equities outperformed the U.S., boosted by a weakening U.S. dollar and China’s reopening, leading the S&P Developed Ex-U.S. BMI and the S&P Emerging BMI to gains of 8% and 7%, respectively.
In a sharp reversal from last year, most S&P 500 sectors posted gains, with Consumer Discretionary in the lead. High Beta led among reported U.S. equity factors, while Low Volatility and Momentum lagged. dashboard-us-2023-01
