Capital Markets: Observations & Insights

Tech Leads Again ​ Performance

• Technology’s outperformance in 1Q18 was due to solid fundamentals as the sector had a very strong earnings season with the best revenue results relative to expectations*

1Q18 Returns (%)

2017 Returns (%)

U.S.

World

U.S.

World

50

4

40

2

30

0

-2

20

-4

10

-6

0

-8

-10

Energy

Utilities

Energy

Utilities

Telecom

Materials

Telecom

Materials

Financials

Industrials

Financials

Industrials

Technology

Real Estate

Health Care

Technology

Real Estate

Health Care

Consumer Staples

Consumer Staples

Consumer Discretionary

Consumer Discretionary

Source: FactSet as of 3/31/18. U.S. represented by S&P 500 and World represented by MSCI AC World Index in local currency.*For the 4Q17 earnings season reported in 1Q18 based on the percentage of companies exceeding estimates.

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