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Small Cap

All articles tagged with #small cap

"Tech Stocks Drive Stock Market Rebound Despite S&P 500's Fifth Losing Day"

Originally Published 1 year ago — by Yahoo Finance

Featured image for "Tech Stocks Drive Stock Market Rebound Despite S&P 500's Fifth Losing Day"
Source: Yahoo Finance

The small cap Russell 2000 Index is down nearly 3% year-to-date, underperforming compared to the S&P 500's gain, as market hopes for interest rate cuts this year have diminished. Small caps are more sensitive to credit and rates, with over 40% of their debt exposed to higher rates, while large caps have more long-rate fixed debt and cash that could benefit from higher rates. The shifting Fed narrative has put a damper on the small cap rally, and the main catalyst for small caps to move higher is more clarity on the Federal Reserve's interest rate path.

Industrials Sound Alarm as Stocks Signal Recession

Originally Published 2 years ago — by Yahoo Finance

US small-cap and industrial stocks are dropping, signaling a potential recession, but some investors are dismissing the moves as noise for now. The S&P 500 Industrials index is down about 8% since August 1, and the small-cap Russell 2000 Index has lost over 11% from its July 31 closing high. Investors are pulling money from equity funds at the fastest pace since December. However, there is hope for stocks as earnings season approaches, with companies expected to post profit declines of just 1.1% in the third quarter. The Federal Reserve also forecasts stronger economic growth than expected. Some investors see the recent drops as a buying opportunity, while others caution that it's too soon to say if the stock market is signaling a recession.

The Small-Cap Rally: A Cautionary Tale for Stock-Market Investors.

Originally Published 2 years ago — by MarketWatch

Featured image for The Small-Cap Rally: A Cautionary Tale for Stock-Market Investors.
Source: MarketWatch

Small-cap shares have rallied around 7% over the last four trading days, but technical analyst Jonathan Krinsky warns investors to proceed with caution as the rally may have run its course. The S&P 500 index is up nearly 12% so far in 2023, with gains heavily concentrated in megacap, technology-related stocks, stoking concerns about the rally's durability. Krinsky expressed concern over a jump in purchases of call options on the iShares Russell 2000 ETF, suggesting "complacency."