Shernice 2000
09-19 15:24

Market Shift:Big Caps Lose Steam, Small Caps Shine

$Instacart, Inc. (Maplebear Inc.)(CART)$  

$NVIDIA Corp(NVDA)$ 

$Tesla Motors(TSLA)$ 

$Microsoft(MSFT)$ 

$Amazon.com(AMZN)$ 

$Alphabet(GOOG)$ 

The initial rate-cut boost has faded for the "Magnificent 7" big cap stocks, with gains retracting due to potential fund reallocation or reassessment of growth prospects.Market Shift: Big Caps Lose Steam, Small Caps Shine

Meanwhile, small cap stocks are surging, with some reaching 52-week highs. This suggests investors are favoring these stocks in the current low-interest-rate environment, drawn to their:

- Higher growth potential

- More attractive valuations

Market sentiment is bullish on small caps, indicating confidence in their upside potential compared to larger, established companies.

Now may be an optimal time to identify small cap stocks with robust fundamentals and growth prospects, poised to benefit from the current economic conditions.

Key Takeaways:

- Big cap stocks' gains retracting

- Small caps showing strength, hitting 52-week highs

- Investors favor small caps' growth potential and valuations

- Opportune time to analyze small cap stocks with solid fundamentals

Modified in.09-19 15:27
Choose TLT or ARKK After Rate Cut?
On September 18, 2024, the Fed cut rates by 50 basis points to 4.75%-5%. The Fed forecasts a total of 100 basis points in cuts for 2024 and another 100 basis points in 2025. TLT fell below $100 yesterday. With the 50bps rate cut confirmed, can TLT start a new uptrend? Additionally, the rate cut might benefit small and mid-cap growth stocks. Will you choose IWM or ARKK?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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