The performance of global stocks diverged during the quarter. In the U.S., large-cap stocks were up 4.3%, while small-cap stocks were down -3.3%. In foreign markets, developed market stocks were down slightly at -0.17% while emerging market stocks were up over 5%. Bonds were basically flat for the quarter, with core bonds up 0.07%.

• The S&P 500 reached an all-time high in late June, driven by the 6 largest stocks, contributing 62% of the return year to date.

• The forward price-to-earnings multiple expanded to 21 by the end of the quarter.

• Foreign developed market stocks took a breather for the quarter while emerging markets were one of the best-performing segments of global markets.

• Inflation remained above the Federal Reserve’s 2% target, forcing them to keep short-term interest rates at elevated levels.

• The U.S. economy and employment remained strong but are beginning to show signs of softening.

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