Reported about 1 year ago
Large-cap stocks have emerged as the top performers in the 2024 stock market rally, with the top decile of the 50 largest stocks in the S&P 500 outperforming the broader index. This shift towards large caps is attributed to investors scaling back bets on interest rate cuts, as larger stocks show more resilience to higher interest rates with robust earnings growth. The trend also indicates that smaller stocks have weaker returns amidst uncertainties in interest rates and economic growth, leading experts to remain cautious about small-cap outperformance. Additionally, big stocks are leading the artificial intelligence trade, with mega-cap stocks returning significantly higher percentages compared to smaller market caps in AI-related indexes.
Source: YAHOO