The current market recovery was primarily limited to large cap tech stocks with 90% of the S&P 500 gain attributable to the “Magnificent Seven.” Finally, in the last six weeks mid and smaller cap stocks have also participated and last week the Dow Industrials and Transports as well as the NYSE Composite all recorded 15- month highs. Even the S&P 400 Mid-Cap Index participated as many of the market’s negative divergences were finally eliminated.
Despite inflated prices consumer spending has been surprisingly resilient. The overall market now exhibits a healthier outlook but seems overbought short term.
Our August 2023 Market Commentary provided by Derwood S. Chase, Jr. Founder & Chairman Emeritus.