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Stock Market Today: Live Updates
Yesterday, the stock market witnessed a significant shift in dynamics. The Russell 2000, a small-cap index, surged over 3%, while major tech stocks like Nvidia and Apple declined, impacting the S&P 500 and Nasdaq Composite. This unusual market behavior could signal a positive turn for the market.
The recent market upturn has been driven by large tech companies, raising concerns among financial experts about a limited set of market frontrunners. However, the release of the June consumer price index report, which showed a slight decrease in headline inflation, may have triggered this divergence in trading.
The Russell 2000, which has struggled throughout the year, experienced a notable leap of more than 3%. Conversely, all stocks in the renowned Magnificent Seven, including $NVIDIA and $AAPL, recorded declines, impacting the $SP500 and $Nasdaq Composite.
Financial experts like Ed Yardeni from Yardeni Research viewed this trading shift as pivotal, anticipating a rotation out of dominant tech stocks into other market segments. The prospect of the Federal Reserve potentially lowering interest rates as early as September following the decline in inflation added to the market's optimism.
Investors appeared to be transitioning from large-cap tech stocks to mid- and small-cap equities, along with real estate investments, in anticipation of a possible rate cut by the Federal Reserve. The bond market also reflected this sentiment, with U.S. Treasury yields declining across the board, indicative of a rally in government bond prices.
The concentration of the market in Big Tech poses challenges during rotational trades, which can be misinterpreted as negative due to the market's heavy reliance on these tech giants. Moreover, signs of a softening U.S. economy in recent months might pose challenges for small-cap stocks, known for their sensitivity to economic conditions and domestic focus.
Looking ahead, several major financial institutions, including $JPM, $WFC, and $C, are slated to announce their quarterly results before the market opens on Friday. Additionally, traders are awaiting the producer price index figures for June and the preliminary consumer sentiment data from the University of Michigan for July.
Original Article: https://www.cnbc.com/2024/07/11/stock-market-today-live-updates.html
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