Nasdaq 100 Index- Commentary

March 2024

Key Highlights US Market Recap

Equities finished March in positive territory, being led by Value-oriented stocks, as the Russell 1000 Value
• Equities finished
Index outperformed both NDX (Nasdaq 100) and the S&P 500. The positive monthly returns contributed to
March in positive
the performance seen for the first quarter of 2024 where NDX returned 8.7%, underperforming the 10.4%
territory amongst a
return of the S&P 500 Index.
CPI print that came
in higher than The US Federal Open Market Committee’s (FOMC) March meeting was held over the 19 th & 20th and led
expected and the to the rate decision that investors were expecting: no change to the current target rate. The upper-end of
US Federal Open the target stayed at 5.50% where it has stood since July of last year. Fed Chairman Jerome Powell’s
Market hawkish comments at the previous meeting allowed investors to further digest the idea of “higher rates for
Committee’s longer.” A new Statement of Economic Projections (SEP) was released in this meeting and showed
decision of “no changes to the FOMC’s dot pot. The dot plot illustrates the future target rate expectations of committee
change” to the members, and it had a slightly more hawkish tilt than the previous plot. While the current year
current target rate. expectations held at potentially three cuts in 2024, 2025 saw a shift up in the median target rate forecast.
This may imply that the FOMC might not cut as quickly to ultimately get to what they believe is the neutral
• For the month of
target rate, a target rate that is neither restrictive nor accommodative.
March, the Nasdaq-
100 Index (NDX) However, statements during the post-meeting press conference were interpreted as dovish and led
returned 1.2% equities to new all-time highs. Powell stated that “the risks are really two-sided here” implying that lowering
underperforming rates too quickly may lead to higher inflation returning, while keeping rates restrictive for too long may
the S&P 500 Index have a negative effect on employment. Although the FOMC has always had a dual mandate of stable
which returned inflation and employment, reigning in inflation had become the more important goal over the past few
3.2%. years. This messaging may be a signal of a more balanced approach between the two mandates. Powell
also answered a question on the uptick seen in the most recent inflation readings and stated that “there’s
reason to think that there could be seasonal effects there.” The chairman also stated that the path down to
the 2% target inflation rate may have bumps along the way. This eased many investors’ fears of rate cuts
arriving even later than expected or a larger shift to a rate hike. The last comment that encouraged
equities to move higher was Powell stating that he believed financial conditions were tight. Recent
readings have showed conditions easing to levels seen at the beginning of 2022. Investors saw the S&P
500 close above 5200 for the first time ever on the day of the FOMC meeting.

The Consumer Price Index (CPI) monthly reading for February was released on the 12th March and
showed year-over-year inflation higher than analysts’ expectations. Inflation came in at 3.2%, higher than
the 3.1% estimate and 3.1% reading of the previous month. A rise in the cost of Core Services continued
About the index to be lion’s share of the reading with the Cost of Food also contributing to the rise. The cost of Energy
• The Nasdaq 100 is one and Core Goods fell on a year-over-year basis.
of the world’s
Month-over-month CPI was announced in line with the street’s expectation of 0.4%. This reading was the
preeminent large cap
highest month-over-month reading since October of last year. This was also the first reading since April of
growth indexes.
2023 where all components, Food, Energy, Core Goods and Core Services, rose. The cost of Core
Services and Energy were the largest contributors to the rise in month-over-month inflation.
• The companies in the
Nasdaq-100 include Index Performance
the largest non-
financial companies 1 Month YTD 1 Year 10 Years (CAGR)
listed on the Nasdaq
Stock Market based on NASDAQ- 100 1.2% 8.7% 39.3% 18.5%
market capitalization.
S&P 500 3.2% 10.4% 29.3% 12.3%

Relative -1.9% -1.6% 7.7% 5.5%

Source: Bloomberg as of 28 March 2024. An investment cannot be made directly into an index.
Past performance may or may not be sustained in future.
Disclaimer: Returns less than 1 year are absolute returns and more than 1 year are Compounded Annualized Growth rate (CAGR)
for Benchmark Indices. The same are for the illustration purpose only and should not be construed as investment advice. It does not
in any manner imply or suggest the performance of any schemes of Invesco Mutual Fund.
Monthly Performance Nasdaq-100 vs S&P 500

Source: Bloomberg as of 28 March 2024. An investment cannot be made directly into an index.
Past performance may or may not be sustained in future.
Disclaimer: Returns less than 1 year are absolute returns and more than 1 year are Compounded Annualized Growth rate (CAGR) for
Benchmark Indices. The same are for the illustration purpose only and should not be construed as investment advice. It does not in any
manner imply or suggest the performance of any schemes of Invesco Mutual Fund.

Sector weightings Nasdaq-100 vs. S&P 500

Source: Invesco, FactSet, as of 28 March 2024. Data in USD.

Disclaimer: The sectors referred above should not be construed as recommendations, advice to buy, sell or in any manner transact in the
sector and neither should it be considered as Research Report from Invesco Asset Management (India) Private Limited and/or Invesco
Mutual Fund.

Nasdaq 100 Performance Drivers

March’s performance attribution of the Nasdaq 100 (NDX) vs the S&P 500 Index

From a sector perspective, Energy, Real Estate and Utilities were the best performing sectors in NDX and
returned 11.78%, 11.00% and 5.41%, respectively. During the month, these three sectors had average
weights of 0.48%, 0.27% and 1.21%, respectively. The bottom performing sectors in NDX were Consumer
Discretionary, Telecommunications and Technology with average weights of 18.13%, 4.43% and 59.72%,
respectively. Consumer Discretionary returned -1.75%, Telecommunications returned 1.28% while
Technology returned 1.57%.

NDX’s underperformance vs. the S&P 500 was driven by its overweight exposure and differentiated
holdings in the Technology sector. The ETF’s overweight exposure and differentiated holdings in the
Consumer Discretionary sector also detracted from relative performance. Underweight exposure in the
Energy sector was the third detractor to relative performance vs. the S&P 500. The Health Care sector
contributed the most to relative performance and was driven by its differentiated holdings and underweight
exposure. Underweight exposure and differentiated holdings in the Real Estate sector also contributed to
relative performance to the S&P 500.

NDX Contributor/Detractor Spotlight: A favorable quarterly earnings announcement was the primary
driver of Micron Technology’s strong performance during the month of March. Analysts were expecting a
$0.24 loss but the semiconductor company surprised investors with a positive $0.42 adjusted earnings-per-
share. This was the first time Micron reported positive earnings-per-share since the fourth quarter of 2022.
Revenue also surprised to the upside and came in at $5.82 billion vs. the $5.35 billion expectation. Micron
saw revenue from all its major business units outperform the estimates that analysts had in place.
 The company also raised guidance for next fiscal quarter’s revenue to $6.6 billion, 10% higher than the
$6.02 billion analyst expectation. Micron has become one of the largest memory chip manufacturers and
storage solutions providers in the world. Their products are used in several technologies such as artificial
intelligence (AI), 5G, autonomous vehicles and data centers. The company stated on their earnings call
that they believe Micron will be one of the biggest beneficiaries in the semiconductor industry as the AI-
enabled opportunity continues over the coming years. Micron’s stock rose over 14% the following trading
session.

March’s Attribution: Nasdaq 100 vs the S&P 500

Nasdaq 100 vs S&P 500
Nasdaq 100
Attribution
Avg Wt
Average Sector Sector Allocation Selection Total
Difference
Weight Return Contribution Effect Effect Effect
(%) vs S&P 500
Technology 59.72 25.22 1.57 0.91 -0.15 -0.61 -0.76
Consumer Discretionary 18.13 3.90 -1.75 -0.33 -0.10 -0.46 -0.57
Energy 0.48 -3.42 11.78 0.05 -0.24 0.01 -0.23
Financials N/A -10.04 N/A N/A -0.23 N/A -0.23
Basic Materials 1.05 -0.65 2.51 0.00 -0.06 -0.06 -0.11
Telecommunications 4.43 2.32 1.28 0.06 -- -0.08 -0.08
Consumer Staples 3.84 -0.95 2.82 0.11 -0.01 -0.06 -0.07
Utilities 1.21 -1.22 5.41 0.06 -0.04 -0.01 -0.05
Industrials 4.58 -7.56 3.43 0.16 -0.03 -0.01 -0.04
Real Estate 0.27 -2.03 11.00 0.03 0.03 0.02 0.05
Health Care 6.29 -5.58 2.92 0.18 0.05 0.04 0.09
Total 100.00 N/A 1.23 1.23 -0.78 -1.21 -1.99
Source: Invesco as of 28 March 2024. Data in USD. Sectors: ICB Classification. All figures in percentage terms. Market allocation effect shows
the excess contribution due to sector/market allocation. A positive allocation effect implies that the choice of sector weights in the portfolio
added value to the portfolio contribution with respect to the benchmark and vice versa. Selection effect shows the excess contribution due to
security selection. A positive selection effect implies that the choice of stocks in the portfolio added value to the portfolio contribution with
respect to the benchmark and vice versa. Total effect is the difference in contribution between the benchmark and portfolio.
Past performance may or may not be sustained in future.
Disclaimer: The returns shown are absolute returns. The sectors referred above should not be construed as recommendations, advice to buy,
sell or in any manner transact in the sector and neither should it be considered as Research Report from Invesco Asset Management (India)
Private Limited and/or Invesco Mutual Fund.

March’s Top Contributors/Detractors relative to the S&P 500

Top Contributors (% of total net assets) Top Detractors (% of total net assets)
Company Weight 1-month Return Company Weight 1-month Return
Micron Technology 0.82% 30.23% Tesla 2.43% -12.92%
Nvidia Corp. 6.27% 14.22% Adobe 1.79% -9.94%
Alphabet (Class A & C) 4.71% 8.93% Apple Inc. 7.62% -5.13%
Source: Bloomberg, as of 28 March 2024. Top and bottom performers for the month by relative performance. Holdings are subject to change
and are not buy/sell recommendations.
Past performance may or may not be sustained in future.
Disclaimer: The returns shown are absolute returns. The stocks referred above should not be construed as recommendations, advice to buy,
sell or in any manner transact in the stocks and neither should it be considered as Research Report from Invesco Asset Management (India)
Private Limited and/or Invesco Mutual Fund.

Historical Performance
Mar-14 to Mar-15 to Mar-16 to Mar-17 to Mar-18 to Mar-19 to Mar-20 to Mar-21 to Mar-22 to Mar-23 to 2023 2021 to
Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 2023
NASDAQ-100
Net TR 21.5% 4.3% 22.3% 22.0% 13.0% 6.7% 68.5% 13.9% -10.6% 39.3% 54.7% 9.9%
Index
S&P 500 Net
TR Index 12.0% 1.1% 16.4% 13.3% 8.8% -7.5% 55.6% 15.2% -8.2% 29.3% 25.7% 9.5%
Source: Invesco, Bloomberg, as of 28 March 2024. Data in USD. For 2022 to 2023, performance shown is from 01 January 2022 to 31
December 2023 and for 2021 to 2023, compounded annual growth rate (CAGR) performance shown is from 01 January 2021 to 31 December
2023. An investment cannot be made into an index.
Past performance may or may not be sustained in future.
Disclaimer: The above returns are absolute returns for Benchmark Indices. The same are for the illustration purpose only and should not be
construed as investment advice. It does not in any manner imply or suggest the performance of any schemes of Invesco Mutual Fund.

This document alone is not sufficient and shouldn’t be used for the development or implementation of an investment strategy. It should not be
construed as investment advice to any party. All figures, charts/graphs and data included in this document are as on date and are subject to
change without notice. The data used in this document is obtained by Invesco Asset Management (India) Private Limited from the sources
which it considers reliable. While utmost care has been exercised while preparing this document, Invesco Asset Management (India) Private
Limited does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the
use of this information. The content of this document is intended solely for the use of the addressee. If you are not the addressee or the
person responsible for delivering it to the addressee, any disclosure, copying, distribution or any action taken or omitted to be taken in reliance
on it is prohibited and may be unlawful. The recipient(s) before acting on any information herein should make his/their own investigation and
seek appropriate professional advice.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.