Market rotation caused a drop in tech stocks, while small-cap stocks rallied; optimism about rate cut.

From Dow Jones & Company: 2024-07-19 18:28:00

Investors were left dizzy by the market rotation last week, with the Nasdaq dropping 3.7% and the S&P 500 down 2%. The Dow, however, rose 0.7%, lifted by underperformers such as UnitedHealth Group and Goldman Sachs Group, while the Russell 2000 jumped 1.7%. Markets are optimistic about a September rate cut by the Federal Reserve, responding to lower inflation and weaker jobs data. Small-cap stocks had a significant rally, with 80% hitting new 20-day highs. The economy may be set to rebound, potentially boosting nontech sectors and offsetting weakness in tech stocks.



Read more at Dow Jones & Company: What the Stock Market’s Wild Week Means for the Next 6 Months