Market Commentary

April 1, 2025

Despite hitting an all-time high On February 19th, the S&P 500 Index declined by -4.27% in the first three months of 2025, its worst quarterly performance in over two years. However, in a reversal from 2024, most of the market is actually only down mildly while The Mag 7 stocks are bearing the brunt of the sell-off.

According to Bespoke Investment Group, the 10 largest names in the S&P 500 fell by an average of -11.4% in Q1 while the remaining 490 names declined by just -0.6%.  Further, nine sectors outperformed the S&P 500 while only Information technology and Consumer Discretionary lagged meaningfully. In fact, according to Duality Research, 60% of stocks in the S&P beat the Index in Q1 with a clear share of outperformance in six sectors, a sign of positive market breadth.