Smaller companies rallied in July. Markets rose in most regions. In the month, large caps outperformed small caps. From a sector perspective, technology, energy and utilities led whilst consumer staples, healthcare and consumer discretionary lagged.

Smaller companies rallied in June. Markets rose in most regions. In the month, the S&P 500 index surpassed its previous record high, marking a very sharp recovery from the selloff in April. From a sector perspective, technology, telecommunications and energy led, whilst the more defensive sectors of consumer staples, utilities and healthcare lagged.

Smaller companies surged in May as the US administration backtracked on some of its previous rhetoric on trade. Asia ex-Japan and the UK delivered particularly strong returns in the month.