GovCon Index Posted Weekly and Monthly Loss, Cut Year-to-Date Gain

Executive Mosaic’s GovCon Index recorded four consecutive daily losses after a solid start to the week. The index, which tracks the stock performances of 30 major government contractors, declined 0.47% Friday to register a 0.69% and 1.08% week-on-week and month-on-month loss, respectively. Nonetheless, the GCI is up 5.92% year-to-date despite a weak June.

The three major U.S. stock indexes closed in the red before the weekend, with only the Nasdaq Composite (+0.24%) notching a weekly gain. However, the Dow Jones Industrial Average and S&P 500 ticked 0.08% lower for the week. On a year-to-date basis, the tech-heavy Nasdaq outperforms with +18.1%.

AI stock Palantir Technologies (NYSE: PLTR) is the top GCI constituent in the first half of 2024 with +47.52%. AeroVironment (Nasdaq: AVAV) was the leading performer until it plunged 7.74% on Thursday. Nonetheless, the manufacturer of unmanned aircraft systems has a market-beating return of +44.53 heading into Q3 2024. Mercury Systems (Nasdaq: MRCY) was the week’s worst performer, sliding 4.43% in five days.

The S&P 500 and Nasdaq’s outsized gains going into the back half of 2024 were tech-driven, mainly due to AI enthusiasm. Still, the timeline for the initial rate cut is at the forefront of discussions. The Feds will lower rates only if ensuing economic data shows inflation is on a credible path to the 2% target.

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