A Week of Mixed Market Movements: Small Caps Rise as Tech Wavers

Last week saw markets treading cautiously as investors digested a flurry of earnings reports and economic data.

In Brief:


Shift in Market Dynamics: The Russell 2000 index of small-cap stocks rose nearly 3% last week, outperforming major indexes like the Nasdaq and S&P 500, which struggled to stay positive. This performance continues to fuel discussions about a potential rotation from mega-cap tech stocks to smaller companies.


Tech Sector Volatility: Despite strong earnings from tech giants Alphabet and Tesla, their forward guidance raised investor concerns. Notably, Tesla's shares fell by 12% following news of a delayed robo-taxi rollout, contributing to a broader tech sell-off.


Contrasting Global Economies: The US economy showed strong growth, expanding by 2.8% in Q2, which surpassed expectations and eased some recession concerns. In contrast, Europe displayed weaker economic signs, particularly in Germany where both manufacturing and services are contracting. The Bank of Canada cut rates as expected and speculation is mounting that the Fed may follow suit in September.


Read the summ: www.investsense.com.au/industry-articles/a-week-of-mixed-market-movements-small-caps-rise-as-tech-wavers


Join the InvestSense Community to receive weekly insights from our investment team: https://www.investsense.com.au/investsense-insights