In a quarter that saw the demise of Silicon Valley Bank, it may be surprising to note the returns of the Nasdaq Composite Index which delivered gains of over 17% in USD, roughly 10% ahead of the broad market index. The rally was sparked by a downward shift of interest rate expectations. The yield on 2 yr treasuries declined from over 5% at the start of March – to well below 4% which sparked the rally in long duration assets. Returns were concentrated with only 8 stocks contributing more than 80% of the S&P 500 index returns for the quarter. Rory Spangenberg, head of global equities, discusses.
