Seven months into 2024, the stock market has shown robust performance, but July marked a significant shift. A “Great Rotation” began, moving investor funds away from Big Tech and toward value stocks and small-caps.
On Wednesday, MarketWatch’s Joseph Adinolfi summarized July’s stock-market dynamics, highlighting how expectations of a change in Federal Reserve policy prompted investors to shift away from the largest technology stocks. He also explored the potential for continued rallies in value stocks and small-caps.
A look at the performance of broad stock indexes underscores investors’ renewed interest in market segments that had underperformed for several years through the first half of 2024, while Big Tech names had soared.
Here’s a summary of how several indexes performed during July, alongside their price changes for the first half of the year to illustrate the rotation. All price changes exclude dividends.
Here’s how the 11 sectors of the S&P 500 performed during July, sorted by their performance:
Here are the 10 S&P 500 stocks that fell the most in July:
These tech stocks soared in the first half of the year but pulled back in July. CrowdStrike (CRWD -0.72%) faced a unique challenge with a worldwide computer outage caused by a software update on July 19, which weighed heavily on its share price.
These seven companies constitute 30.6% of the SPY portfolio and dominated technology stock action, especially last year. Here’s their performance in July and during the first half of 2024, sorted by market capitalization as calculated by FactSet:
This shift in investor behavior indicates a potential long-term trend as the market adjusts to new economic conditions and expectations.
Today, we have an important task to kick off the trading day: rolling over our…
Hello, traders! Today is Thursday, December 19th, and I’m excited to share insights on a…
As we enter 2025, now is the perfect time to sharpen your trading strategies and…
Today, the market is experiencing a significant sell-off. Let’s dive into the current situation and…
Stock Market Jitters: Fed Signals Slower Rate Cuts, Spiking Volatility Financial markets faced a wave…
Are you ready to elevate your trading strategies and achieve consistent results? In this blog…