
Cyclical stocks sniff out better times ahead
Different economies, different drivers, similar price action. The German DAX, ASX 200 and Russell 2000 are all hinting at a more optimistic view on the global economy.
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Different economies, different drivers, similar price action. The German DAX, ASX 200 and Russell 2000 are all hinting at a more optimistic view on the global economy.

Well, it’s here. The question now is whether you still want it when it seems to be more out of favor than at any point in the past year.

Stocks were rocked to start last week but a massive doji in crude oil prices highlights both the danger of chasing weekly open gaps along with the possibility for a turn in what’s become a correlated trade across several asset classes.

The S&P 500 finally touched the 7k level, but it couldn’t do much above that, meanwhile the big story for the year remains the revival of small caps with the Russell 2000.

The high-flying AI stocks that have been a large part of the equity rally over the past three-plus years lag small caps as the Russell 2000 has come to life in a very big way to start 2026 trade.

Nasdaq, Russell Outlook: The last time the Russell 2000 struggled near its record highs and the 2,500 resistance level, U.S. indices faced a sharp pullback triggered by tariff concerns. Now, as we approach year-end amid stretched sentiment and valuations, consolidation risks are on the rise.

With price action on major global indices remaining bullish, the Dow Jones and Russell 2000 forecast both remain positive ahead of the Fed’s rate decision on Wednesday.
Was last week’s Nasdaq and Russell 2000 rally driven by politics or something deeper in the rates market? Unpack the signals behind the big US stock market surge.
September is not the kindest month for US stocks. But in 2024, the trajectory for the US economy may override everything given it will feed through to expectations for earnings growth and how much the Fed may need to reduce interest rates. We look to levels on S&P 500, Nasdaq 100 and Russell 2000 futures for a blueprint on potential trade setups.
If the ratio is rising, the NASDAQ 100 is outperforming. If the ratio is falling, the Russell 2000 is outperforming.
The market has been quick to dismiss the Fed’s hawkishness and price in a lower terminal interest rate in recent meetings...
The terminal rate is going to be as an important consideration for the markets as the decision to potentially downshift in December.
The list of worries for investors grow larger...
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