The true bull market may finally 'wake up' as investors eye rate cuts
Investors have been rotating to stocks outside of Big Tech in what could be the start of a new leg of the bull market.
Investors have been rotating to stocks outside of Big Tech in what could be the start of a new leg of the bull market.
The Dow Jones Industrial Average (^DJI) notched a record close while the S&P 500 (^GSPC) ended the day just below a record high in Monday's session. Yahoo Finance Reporter Josh Schafer joins Asking for a Trend to discuss his takeaways from the trading day. First, he points to the continued broadening of the market as a major trend. Energy (XLE), financials (XLF), and industrials (XLI) all led the market's rally while tech (XLP) came in just shy of the S&P 500 over the last five days. Next, the Russell 2000 (^RUT) hit its highest level since 2022. As more economic data points to cooling inflation, confidence grows in the potential for a September rate cut, giving small caps a boost. Finally, the economy is showing signs of overall moderation. As June's retail sales report is set to be released on Tuesday, Wall Street is expecting sales to fall about 0.2%. Schafer explains that if the print comes in line with expectations, it would serve as yet another data point showing that the economy is responding to higher interest rates. This would also give the Federal Reserve more confidence in initiating an interest rate cut. For more expert insight and the latest market action, click here to watch this full episode of Asking for a Trend. This post was written by Melanie Riehl
Equity ETPs led the charge with $90 billion in inflows, while fixed income and commodities also saw positive flows
Yields are in the middle of this year's range.
This consumer discretionary ETF hits a new 52-week high. Are more gains in store for this ETF?
-- Gold prices fell slightly in early Asian trade on Monday, remaining in sight of a record high but seeing few increases in safe haven demand after an alleged assassination attempt on former U.S. President Donald Trump.
Stock markets (^DJI, ^IXIC, ^GSPC) are showing signs of recovery following Big Tech's worst performance day of the year. To provide insight into these market dynamics, Bespoke Investment Group co-founder Paul Hickey joins Market Domination Overtime. Hickey highlights a significant trend: the S&P 500 Equal Weight Index (^SPXEW) has underperformed the standard S&P 500 (^GSPC) index over the past six months by "one of the widest margins on record." Addressing the tech-driven rally, Hickey says: "You can only get the rubber band so stretched before it either snaps or it just comes back." He suggests that the market pullback witnessed this week represents this "snapback" effect, a natural correction to continued tech dominance. In light of these dynamics, Hickey sees opportunities for investors in small-caps or smaller names within the S&P 500. "Sometimes you want to have an answer to everything, but... the last couple of days just don't have really any parallels to what we've seen in the past," Hickey tells Yahoo Finance. For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime. This post was written by Angel Smith
In today's episode of Market Domination Overtime, hosts Josh Lipton and Julie Hyman dive into the most prominent dynamics leading stocks and the US housing market. US equities (^DJI, ^IXIC, ^GSPC) are in focus as the major indexes rebound following a bad day for Big Tech stocks. Paul Hickey of Bespoke Investment Group joins to discuss the "rubber band" dynamic being created within markets. Mortgage rates are on a decline, potentially opening the door for new homebuyers. Zillow senior economist Orphe Divounguy joins to discuss everything buyers need to know from housing affordability to the best markets to shop in. This post was written by Angel Smith
As mortgage rates begin to see some easing and housing inventory begins to recover, there may be some hope on the horizon for potential homebuyers. Zillow senior economist Orphe Divounguy joins Market Domination Overtime to give insight into the housing market, what potential homebuyers need to know, and the more affordable housing markets in the US. Divounguy elaborates on some of the good news: "We have a low 4.1% unemployment rate. The loosening in the labor market came from a big increase in labor supply as opposed to layoffs. Potential home buyers are basically seeing mortgage rates easing, and that could be helpful for the housing market going forward. You take that and you combine that with the fact that we have more inventory than we had a year ago, and those are positive signs ahead". For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime. This post was written by Nicholas Jacobino
The small-cap index Russell 2000 (^RUT) has begun to rise after megacap tech stocks like Tesla (TSLA) and Nvidia (NVDA) saw sell-offs after reaching new highs. The Morning Brief anchors Brad Smith and Seana Smith break down the latest developments in small-cap investor sentiments. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Nicholas Jacobino