Yesterday after testing 4,300 the S&P 500 pulled back to end the session modestly lower. Throughout this week the index has been trading in a ~1% range holding on to last weeks gains. While this index has just marked some time the market breadth has improved significantly as small and mid-cap stocks are finally showing some life with both the S&P 400 and Russell 2k up ~7% since the start of June. As we highlighted in some of the stats yesterday it will be hard for the default benchmark index (S&P 500) to move higher unless there is participation by the largest companies. Ahead of the open it looked like the rotation would continue but the tone shifted after this morning’s initial claims jumped over 260k for the first time since October of 2021. This caused yields to pull back as the hard landing narrative catches a little steam and the mega-cap tech stocks are catching a bid again. The NYSE FANG+ index is up ~2% recouping a good portion of yesterday’s losses. As we head to print, the S&P 500 is up 18pts to 4,285 (+0.4%), the Dow is up 141pts to 33,806 (+0.4%), while the Russell 2k is down 8pts to 1,880 (-0.4%).

READ MORE

WEEKLY RECAP