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  • Writer's pictureMatthew Lawson

Market Summary for 2nd Quarter: Winners and Losers

The second quarter of 2023 was a period of significant market activity and notable trends in the stock market. Let's take a closer look at the winners and losers during this period.


One of the standout winners of the second quarter was the tech sector. The Nasdaq Composite Index recorded impressive gains, up by over 9% (1). Companies such as Apple, Facebook, Microsoft, and Amazon performed exceptionally well, driven by increased demand for digital products and services during the ongoing pandemic (1).

Healthcare stocks also had a strong showing during the second quarter. Biotech and pharmaceutical companies, in particular, experienced significant gains. For example, Moderna, a key player in COVID-19 vaccine development, saw its stock price rise by over 116% during the quarter (2).

Another winner during the second quarter was the small-cap sector. The Russell 2000 Index, which tracks small-cap stocks, saw growth of over 4%, outperforming larger cap stocks (3). Small-cap companies are often seen as having greater potential for growth, and their performance is viewed as an indicator of market sentiment.


The energy sector faced challenges during the second quarter. Despite the reopening of economies and increased travel, the S&P 500 Energy sector experienced a decline of 7% (4). Factors such as rising oil inventories, falling prices, and concerns regarding climate change contributed to the sector's underperformance.

Financial stocks also had a difficult quarter, with the S&P 500 Financials Index losing over 2% (5). Low-interest rates, inflation concerns, and uncertainty surrounding cryptocurrencies and regulatory pressures have impacted the profitability and performance of banks and financial institutions.

Emerging markets, including China, India, and Brazil, had a relatively weaker performance compared to their developed counterparts. The MSCI Emerging Markets Index increased by 5% during the second quarter, lagging behind the gains seen in the S&P 500 (6). Economic slowdowns, rising debt levels, and ongoing trade tensions contributed to the challenges faced by these markets.


The second quarter of 2023 offered both opportunities and challenges for investors. Tech and healthcare stocks emerged as winners, benefiting from shifting market demands. Conversely, the energy sector, financial stocks, and emerging markets faced various headwinds during this period. As always, it is important for investors to carefully analyze market conditions and make informed decisions based on their risk tolerance and investment goals.


  1. Morningstar. "Q2 2023 in Review and Market Outlook." Link ↩2

  2. Morningstar. "U.S. Stock Market Outlook: June 2023." Link

  3. Morningstar. "Second-Quarter 2023 Stock Market Outlook: Undervalued, Rough Road Ahead." Link

  4. Reuters. "Six questions facing US stock investors as 2023's second half nears." Link

  5. Axios. "The stock market’s surprising first-half strength." Link

  6. TheStreet. "2023 Second Half Preview: What to Expect for the Stock Market." Link

The views expressed are not necessarily the opinion of Cadaret Grant, and should not be construed directly or indirectly, as an offer to buy or sell any securities mentioned herein. Investing is subject to risks including loss of principal invested. Past performance is not a guarantee of future results. No strategy can assure a profit nor protect against loss. Please note that individual situations can vary. Therefore, the information should be relied upon only when coordinated with individual professional advice.

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