by Kyle Plotkin
Investment Advisor Representative
[email protected]
In last week’s newsletter, Peter covered the recent stock market volatility and the headlines fueling this roller coaster ride. I’d like to follow up by diving deeper into the trends and patterns that might help put things into perspective.
This year (2025) started on a strong note, with the S&P 500 reaching an all-time high on February 19th. However, since then, the market has taken a rough turn. As of Wednesday’s close, the S&P 500 was down 2.9% for the year, while the tech-heavy Nasdaq dropped 7.3%.
For much of the past decade, the U.S. stock market has outperformed global markets. This year, however, the trend has reversed. International indexes are seeing gains, with the MSCI EAFE index – which tracks developed markets – up double digits through last Friday. Meanwhile, the MSCI Europe Index has climbed more than 13% year-to-date.
Looking at market performance by company size offers more insight. The S&P 500, Nasdaq, and Dow Jones—which track large-cap stocks—are all down, as mentioned earlier. Smaller companies haven’t fared much better, with the S&P 500P Small Cap 600 Index falling more than 8%.
Another way to analyze market trends is by sector performance. Of the 11 sectors in the U.S. market, Energy and Healthcare are leading the way, each up more than 6% this year. On the flip side, Information Technology and Consumer Discretionary have been the worst-performing sectors. This marks a sharp contrast from recent years, when the tech-focused “Magnificent Seven” (Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla) were driving market gains.
At FRS, we’re closely monitoring market trends and adjusting portfolios accordingly. Most importantly, it’s essential to ensure your portfolio aligns with your risk tolerance and financial goals. If you’d like to review your portfolio, we’re happy to help. Just give us a call at 215-657-9200.
Enjoy the warm weather this weekend!
Kyle