Last week, the major U.S. stock indices closed in positive territory for the second consecutive week. Once again, they were led by the small-cap Russell 2000 and tech-heavy Nasdaq 100, which both gained 3.4% for the week. #-ad_banner-# As I have stated in this space on numerous occasions, technology and, to a lesser degree, small caps, typically lead the broader market both higher and lower. So, the quality of the recent rally is encouraging. Another encouraging sign is that all sectors… Read More
Last week, the major U.S. stock indices closed in positive territory for the second consecutive week. Once again, they were led by the small-cap Russell 2000 and tech-heavy Nasdaq 100, which both gained 3.4% for the week. #-ad_banner-# As I have stated in this space on numerous occasions, technology and, to a lesser degree, small caps, typically lead the broader market both higher and lower. So, the quality of the recent rally is encouraging. Another encouraging sign is that all sectors of the S&P 500 finished in positive territory last week. After technology, financials were the best-performing sector. Financial stocks are a direct beneficiary of the sharp rise in long-term interest rates following the minutes of the April 26-27 Federal Open Market Committee meeting. Ironically, the recent rise in interest rates — which the stock market has lived in fear of since the Federal Reserve’s quantitative easing program came to an end in October 2014 — may have helped fuel the current stock market rally. Investors now seem to be taking rising rates as an indication that the extremely cautious Fed… Read More