Mega-cap technology stocks have driven the Nasdaq and S&P 500 higher while, like a shiny veneer, they’ve masked broader stock market weakness. But there’s reason to believe that the covering may soon come off as mega-caps turn into a liability for the broader market.
Stocks rebounded in late trading to close higher, as investors weighed potential economic damage from expiring unemployment benefits against blowout earnings from technology giants.
The performance of IWM is not a huge driver of the value of my portfolio, but I am always interested in out-of-the-range data, and the Russell has been full of such readings lately. Well, it is easy to scoff and say "small stocks", and many market observers are guilty of just such a dismissal of the Russell and its predictive impact on the broader stock market and the broader economy. If everything is go, go, go for the Nasdaq and its MAFANG leadership names, why isn't that also the case for the Russell?