Friends
Stocks keep moving higher in parabolic fashion. I think even the bulls are surprised by the market’s strength. Most noteworthy is the rotation we have seen from growth to both value and small caps. All this as market participants become convinced that the Fed will lower rates in the coming months.
By the close, the Dow Jones Industrial Average was up 742 points to finish the day at a record high of 40,954. The S&P 500 was up 35 points to close at 5,667. The Nasdaq Composite Index was up 36 points to close at 18,509. Gold was up $42 to trade at $2,471 per ounce, while oil was down $1.07 to trade at $80.84 per barrel WTI.
I mentioned the rotation from growth to value and small caps. Interestingly, growth is not really selling off, it’s more like new money is simply moving in a different direction than we have seen this year. Will that continue? Well, let’s see who earns what as earnings season unfolds. That may or may not justify the rotation. Stay tuned.
Have a nice evening everyone.
