Propelled by weakness in Big Tech coupled with expectations of potential Fed rate cuts, the market witnessed a significant rotation toward smaller-cap stocks in July. The S&P MidCap 400® and the S&P SmallCap 600® were up 6% and 11%, respectively, outperforming the S&P 500® by a significant margin.
Real Estate and Utilities led among large-cap sectors, while Information Technology and Communication Services were the laggards.
Most of our reported factor indices posted gains, led by dividend and value strategies, another sign of the market’s rotation away from Growth and Momentum, which have been the leaders YTD.dashboard-us-2024-07
