Quarterly report
Broad-based Q4 rally aids small-cap rebound; Growth dominates in 2023
Small-caps rebounded strongly in broad-based Q4 rally, supported by easing financial conditions and expectations of the end of aggressive rate hikes. Large-cap Growth continued to hold sway over its Value counterpart in Q4, preserving its massive outperformance for the year. Real Estate and small-cap Financials shone. Energy lagged badly, hurt by falling oil prices.
Key highlights:
- Small-caps led in broad-based Q4 rally
- Financials and Real Estate rebounded, Energy lagged
- EPS growth stabilised for large-caps
- Dividend yields edged lower
- Valuation re-ratings continued
- Russell IPO inclusions remained muted
Authored by FTSE Russell’s Global Investment Research team, this quarterly publication provides a deep-dive into the performance and key market drivers of US equities, viewed through the lens of Russell large-cap (Russell 1000), small-cap (Russell 2000), Growth and Value indexes. It's part of a series of reports, available by email as soon as they are published.
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