Official announcement from the Federal Reserve following their next meeting

S&P 500 Closes Above 5600 for 6th Straight Record as Small Caps Surge 3.57%

Jul 11, 2024, 02:49 PM

On July 10, 2024, the S&P 500 and Nasdaq reached all-time highs, with the S&P 500 closing above 5,600 for the first time at 5600.22, up 0.42%. This marked the index's sixth straight record close and its 37th record close of the year. However, the following day saw a significant market rotation. The Russell 2000, a small-cap index, surged by 3.57%, while the S&P 500 fell by 0.88% and the Nasdaq dropped by 1.95%. This marked the largest outperformance of small caps over large caps since November 2020. The rotation was driven by softer-than-expected inflation data, which bolstered hopes for Federal Reserve rate cuts. Major tech stocks, including Nvidia, Apple, and Tesla, experienced significant declines, with Tesla dropping more than 8.32% and Nvidia falling by 6%. The market shift reflects growing investor optimism towards smaller companies amid expectations of lower borrowing costs. CPI data is expected tomorrow.