Investors Rotated $9-B into US Small Cap Stocks
- Russell 2000 +5.9% YTD
- S&P 500 +1.5% YTD
Small-cap stocks are showing well in here, even as the benchmark 10-yr T-Note yield rose to a 7-year high.
US Treasuries Yield Check
- 2-yr -3 bpts to 2.54%
- 5-yr -4 bpts to 2.89%
- 10-yr +4 bpts to 3.07%
- 30-yr -4 bpts to 3.21%
But for most companies, rising rates was a negative, and the S&P 500 Index had its biggest decliner since early April, nevertheless big cap earnings are growing.
This Bull Run powering through its 10th year as it consolidates the huge extension leg that began on 8 November 2016, and will mark the longest on record if it marks 21 August 2018.
Sentiment has become an issue as the Bulls who saw an all-clear signal in last week’s 2.4% S&P 500 rally were turned back at the Key resistance on a technical response.
The geopolitical and ‘trade’ issues are not a factor in this stock market’s action, but the Trump Tax Cut is.
Have a terrific week.