Small-cap value stocks are on the rise, outperforming the broader market as the Russell 2000 index sees a positive streak. Linda Duessel, a senior equity strategist, advises investors to focus on profitable small-cap companies with strong growth profiles. The small-cap value funds are leading the rebound, hinting at more financially stable options in the market.
On the other hand, Ford is facing its worst week since March 2020, with shares falling around 20%. The company is struggling amidst market volatility and economic challenges.
Meanwhile, more than 40% of S&P 500 companies have reported earnings, with the majority beating expectations. Key names like Microsoft, Meta, Amazon, and Apple are set to report next week, shaping the ongoing earnings season.
The University of Michigan survey shows a lower inflation outlook, providing some relief to consumers. The overall sentiment index dipped slightly, but the inflation expectations remain low, offering some stability in the market.
Overall, the market is seeing a shift towards small-cap stocks, with the Russell 2000 index on track for a three-week winning streak. This rotation out of megacap tech companies is reshaping the market landscape, with small caps gaining momentum.
In conclusion, the market is experiencing a mix of ups and downs, with small-cap value stocks shining bright amidst the volatility. Investors are advised to stay cautious and focus on profitable companies with strong growth potential in this ever-changing market environment.