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Markets are settling into holiday mode, with stock futures slightly down on the last full trading day before Christmas. Here’s where things stand today: * Nasdaq-100: +0.37% * S&P 500: +0.04% (flat) * Dow Jones: -0.22% On Friday, the S&P 500 rose 1.1%, recovering
Quantum computing stocks are taking off in 2024. Is this the start of something big? Let’s take a closer look Google’s Chip Changes the Game Google’s new Willow chip, a 105-qubit processor, hit a big milestone: * Fixed Errors: It solved a 30-year problem by cutting down error
Government surveys that track the economy are failing. Budgets are shrinking, people are skipping surveys, and economic data we rely on is becoming less trustworthy. This is a big deal—because when the numbers are wrong, decisions that affect markets, businesses, and everyday life go wrong, too. Here’s what’
The S&P 500 Value Index just dropped 3.7%, marking its longest losing streak on record. Meanwhile, Bitcoin smashed past the $100,000 mark, and the Nasdaq climbed to 20,000. To me, it seems that value stocks have been left in the dust, and investors chasing bigger
Almost $10 billion has poured into Bitcoin ETFs since the US election, pushing Bitcoin past the $100,000 mark for the first time. The momentum is crazy, with Bitcoin posting its best winning streak since 2021. With investors pouring in, knowing the risks are more important than ever. Bitcoin’s
June's CPI inflation report shifted markets last week as tech giants take the back seat and small caps start to steal the spotlight
June's CPI inflation report shifted markets by a LOT. What's different?
Small caps, previously lagging, have seen huge gains. The Russell 2000 index, which just days ago was flat for 2024, soared 3.6% in its best day since November. Real estate, the S&P 500’s worst-performing sector this year, jumped 2.7%, while utilities and industrials groups advanced 1.8% and 1.3%, respectively.
Cooling inflation is easing market fears, changing our investment strategies. Last weeks performance tells us we're now paying attention to sectors that could benefit from potential interest rate cuts. Data from Thursday showed price pressures easing, deepening the market’s confidence that the Federal Reserve would cut interest rates in September.
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Consumer-Price Index (CPI) Data: The CPI rose 3% in June from a year earlier, down from 4% in May.
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10-Year U.S. Treasury Yield: The yield dropped to 4.19% on July 11, from 4.28% the previous day
This drop in bond yields triggered a rush into beaten-down corners of the market that could benefit from falling rates (like real estate, utilities, and industrials).
Small-Cap Stocks like Victoria’s Secret gained 6.1%, Bloomin’ Brands rose 7.1%, and Winnebago Industries added 6.7% (WSJ)
Big tech stocks, which dominated the first half of the year, faced big declines. The "Magnificent Seven" tech stocks collectively lost $597.5 billion in market value, their largest one-day loss since February 2022. Nvidia slid 5.6%, Meta Platforms declined 4.1%, and Tesla retreated 8.4%.
This rotation out of tech suggests a newfound confidence towards other investments in the stock market. Investors are finding opportunities in beaten-down sectors that could benefit from lower interest rates.
Quotes from market experts like Sinead Grant, Chief Investment Officer at BNY Wealth had this to say 👇
"There is some pent-up demand from investors to diversify more, to look for those names or those sectors that have been less well loved over the first half of the year" (WSJ)
A deeper look at the impact of cooling inflation and this abrupt transition out of big tech seems like we're taking a breather from the madness of AI recently. More people are diversifying into other industries, including small-cap stocks.
Are you going to adjust your investments in light of these changes? If you found this article insightful, share it with your network to keep them informed about this trend.