Stock Rotation Boosts Small-Caps – US Market Wrap

Stock traders continued to drive a rotation away from the megacaps that have propelled the bull market and towards other corners of Wall Street.

Economically sensitive stocks performed well, with the Russell 2000 index of smaller companies reaching its highest level in nearly three years. Most major technology companies fell, but Nvidia rose 3.1%. An equal-weighted version of the S&P 500 outperformed the US benchmark. That gauge is less affected by the largest companies, giving hope that the rally will spread.

Traders also continued to sort through a slew of corporate earnings. Morgan Stanley rose 6.5% as traders and bankers joined their Wall Street peers in reporting higher-than-expected revenue, resulting in a 32% profit increase for the third quarter. United Airlines Holdings soared 12% after earnings exceeded expectations.

The S&P 500 increased 0.5% to around 5,840. The Nasdaq 100 showed little change. The Dow Jones Industrial Average rose 0.8%. The Russell 2000 gained 1.6%. The Magnificent Seven gauge showed little change.
Treasury 10-year yields fell two basis points, to 4.01%. Bitcoin gained 1.9% to $67,728.77.