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U.S. equities saw significant gains, spurred by a softer U.S. labor market and decreasing inflation, leading to expectations of earlier central bank rate cuts. The long-end of the Treasury curve shifted down, with the 10-Year Treasury yield falling from 4.9% to 4.4%. Lower yields benefitted interest rate-sensitive sectors like real estate and technology. Soft landing economic growth expectations took the spotlight this month, benefiting economic growth sensitive sectors such as financials and consumer discretionary. Conversely, the decline in oil and gas prices led to the underperformance of the energy sector.

Global equities rallied, supported by encouraging inflation prints in both the UK and Europe, as well as the decline in the U.S. dollar. Emerging markets saw strong gains due to renewed investor interest in risk assets. However, within EM, China continues to weigh down performance amid economic growth concerns stemming from the troubled real estate sector.