Top Performing and Lowest Stock Performances in the United States and the United Kingdom for the Year
In the first half of 2024, the FTSE 100 and stock market today have shown contrasting performances, with several companies across the US and the UK delivering glittering returns. However, there are also some stocks that have underperformed.
FTSE 100: Stocks in the Red
Whitbread, Spirax, Prudential, Barratt Developments, Reckitt, JD Sports, and Entain have been among the bottom 10 FTSE 100 stocks, with returns ranging from -16% to -38%. The worst performer in this group is Burberry, with a return of -38%.
S&P 500: Struggling Stocks
In the S&P 500, Tesla, despite a recent recovery, could have been among the bottom 10 stocks, had the data been available. EPAM Systems, Warner Bros Discovery, Intel, Lululemon, Cooper Companies, Walgreens Alliance, MarketAxess, Globe Life, and Albermarle have also struggled, with returns ranging from -31% to -77%. Lululemon has the lowest return of -42%.
Market Trends
The FTSE 100, the UK's main stock market index, has had a strong start to the year, soaring to new record highs and climbing 6.6% year-to-date. The stock market today, on the other hand, has posted far stronger returns, climbing by 16.75% over the same period.
Year-to-date returns can be helpful in identifying trends such as the ongoing march of Big Tech and the effect of persistently high interest rates. The US stock market has been largely driven by the outperformance of Big Tech firms, including Nvidia.
One criticism of the UK stock market has been that it is under-exposed to technology companies. British microcomputer-maker Raspberry Pi went public with an initial public offering last month, which could potentially change this landscape.
Other Factors Affecting the Market
There are five clear trends to explain the big movements on the UK and US stock market today in the first half of the year: takeovers, AI, interest rates staying higher for longer, shifting fortunes in the fashion sector, and lingering concerns around growth for certain companies.
Interest rate cuts tend to lift equity markets in general, by encouraging growth and boosting earnings. However, some sectors like banks have done well while interest rates have been at a 16-year high, with favorable net interest margins boosting their profitability. Interest rate cuts could shift some of the sectors that are underperforming, potentially boosting sectors like housebuilders.
The London Stock Exchange has lost a string of companies to buyout activity in recent years, including AI and cybersecurity firm Darktrace, the top performer in the FTSE 100 year-to-date. The UK general election could potentially boost the housebuilding sector, as both Labour and the Conservatives have committed to building more homes over the course of the next parliament.
Most people advise holding a stock for a minimum of three to five years to ride out any short-term volatility. However, the worst 10 stocks in the FTSE 100 and the S&P 500 for the period from January 1 to June 28, 2024, were not specifically published or listed in the available search results. No direct data or official publication dates were found for the worst-performing stocks in these indices within that timeframe.
Dan Coatsworth, investment analyst at AJ Bell, stated that it's no wonder that investors have put their faith in North America to build their wealth due to the stronger returns in the US equities. Despite the challenges faced by some stocks, the overall trend in both the FTSE 100 and the S&P 500 suggests a robust and dynamic stock market today.
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