The Great Rotation: Top S&P 500 Losers in July
Seven months into 2024, the stock market has enjoyed a strong performance, but July marked a significant shift. A “Great Rotation” began, moving investor funds away from Big Tech and towards value stocks and small-caps. On Wednesday, MarketWatchās Joseph Adinolfi summarized July’s stock-market dynamics, highlighting how expectations of a change in Federal Reserve policy prompted […]
Wall Street Debates Treasuryās Market Influence
A newly published white paper has sparked debate on Wall Street and in Washington by accusing the Treasury Department of excessively relying on short-term Treasury bills to manipulate the economy for political purposes, potentially risking a resurgence of inflation. The paper, released last week, argues that the Treasuryās strategy of financing a significant portion of […]
Why Traders Are Eyeing a Different Central Bank This Week
This week, three of the world’s most influential central banks will announce monetary policy updates within a 32-hour span. On Thursday, the Bank of England might reduce borrowing costs, while the Federal Reserve is expected to hold rates steady on Wednesday but may hint at a potential rate cut in September. However, the most critical […]
Tech and Small-Caps Stock Brace for Fed Decisions
A rate cut isnāt expected in the coming week, but the Fed could signal if small-caps can keep up their winning streak. A market-moving force might soon impact a rapidly evolving stock market. U.S. equities were particularly volatile last week as investors contended with a sharp selloff in big-tech stocks and a rotation into small-cap […]
Stock Buybacks Under Scrutiny: Morgan Stanley’s Revelations
Morgan Stanley has recently brought attention to a risk associated with stock buybacks that is often overlooked. Technology stocks experienced their worst day in nearly two years, and hedge-fund manager Bill Ackman received more bad news. But first, let’s delve into a critical analysis by Michael Mauboussin, head of consilient research at Morgan Stanley Investment […]
Stock Market Rotation from Big Tech: Key Levels to Watch
BofA strategists note that a lower Treasury yield combined with an improving manufacturing PMI has historically led to the outperformance of the equal-weighted S&P 500 index. In the past week, there has been a significant shift towards U.S. small-cap stocks, causing investors to consider if this trend marks a rotation away from this yearās Big […]
