{"id":71943,"date":"2024-07-12T02:00:16","date_gmt":"2024-07-12T02:00:16","guid":{"rendered":"http:\/\/guid_108004859"},"modified":"2024-07-12T02:00:16","modified_gmt":"2024-07-12T02:00:16","slug":"thursday-was-a-historically-strange-day-in-the-stock-market-that-may-be-good-news","status":"publish","type":"post","link":"https:\/\/wp.timesamerica.net\/thursday-was-a-historically-strange-day-in-the-stock-market-that-may-be-good-news\/","title":{"rendered":"Thursday was a historically strange day in the stock market. That may be good news"},"content":{"rendered":"\n<div><img decoding=\"async\" src=\"https:\/\/wp.timesamerica.net\/wp-content\/uploads\/2024\/07\/thursday-was-a-historically-strange-day-in-the-stock-market-that-may-be-good-news.jpg\" class=\"ff-og-image-inserted\"><\/div>\n<p><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"><\/span><\/p>\n<div class=\"RelatedQuotes-relatedQuotes\" id=\"RegularArticle-RelatedQuotes\">\n<div class=\"RelatedQuotes-quotesContainer\">\n<div class=\"RelatedQuotes-titleAndTime undefined\">\n<p class=\"RelatedQuotes-text\">In this article<\/p>\n<\/div>\n<ul class=\"RelatedQuotes-list\">\n<li class=\"QuoteItem-item\" aria-label=\"Quote for null\"><span class=\"waslinkname\"><span class=\"QuoteItem-symbol\">.SPX<\/span><\/span><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"RegularArticle-WatchlistDropdown\" data-analytics-id=\"RegularArticle-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/li>\n<li class=\"QuoteItem-item\" aria-label=\"Quote for null\"><span class=\"waslinkname\"><span class=\"QuoteItem-symbol\">.IXIC<\/span><\/span><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"RegularArticle-WatchlistDropdown\" data-analytics-id=\"RegularArticle-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/li>\n<li class=\"QuoteItem-item\" aria-label=\"Quote for null\"><span class=\"waslinkname\"><span class=\"QuoteItem-symbol\">.RUT<\/span><\/span><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"RegularArticle-WatchlistDropdown\" data-analytics-id=\"RegularArticle-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/li>\n<\/ul>\n<\/div>\n<div class=\"RelatedQuotes-cfaButtonContainer\"><button id=\"ArticlePageTickerCreateAccountButton\" class=\"CreateFreeAccountButton-buttonContainer\"><span class=\"CreateFreeAccountButton-buttonText\"><span>Follow your favorite stocks<\/span><span class=\"CreateFreeAccountButton-buttonTextBold\">CREATE FREE ACCOUNT<\/span><\/span><\/button><\/div>\n<\/div>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-107432320\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div class=\"InlineImage-imagePlaceholder\" style=\"padding-bottom:55.55555555555556%\">\n<div style=\"height:100%\" class=\"lazyload-placeholder\"><\/div>\n<\/div>\n<div>\n<div class=\"InlineImage-imageEmbedCaption\">Traders work on the floor at the New York Stock Exchange on June 24, 2024.<\/div>\n<div class=\"InlineImage-imageEmbedCredit\">Brendan McDermid | Reuters<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>Wall Street saw a dramatic shift in market trends on Thursday, with winning and losing stocks swapping places for a day. It may turn out to be just what the rally needs to keep going.<\/p>\n<p>The <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-1\"><span class=\"waslinkname\">Russell 2000<\/span><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span> small-cap index, which has struggled to find its footing all year, jumped more than 3% on Thursday. At the same time, every stock in the so-called Magnificent Seven fell, including a more than 5% decline for <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-2\"><span class=\"waslinkname\">Nvidia<\/span><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span> and a 2.3% drop for <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-3\"><span class=\"waslinkname\">Apple<\/span><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span>, which dragged down both the <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-4\"><span class=\"waslinkname\">S&amp;P 500<\/span><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span> and <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-5\"><span class=\"waslinkname\">Nasdaq Composite<\/span><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span>.<\/p>\n<div style=\"height:100%\" class=\"lazyload-placeholder\"><\/div>\n<p>Bespoke Investment Group shared two statistics on the <span class=\"waslinkname\">social media site X<\/span> to demonstrate how rare it is to have that type of split.<\/p>\n<ul>\n<li>Thursday was just the second day since 1979 when the Russell 2000 rose more than 3% while the S&amp;P 500 declined.<\/li>\n<li>The Nasdaq Composite underperformed the Russell 2000 by more than 5 percentage points in what appears to be biggest daily gap on record. The only other time the gap came in above 5 percentage points was in November 2020, right after Pfizer shared positive results from a Covid-19 vaccine trial.<\/li>\n<\/ul>\n<p>While the major market averages and many individual 401(k) accounts may show a decline for the day, this odd set of results could be a positive sign for the market. Much of the recent rally has been driven by large tech companies, leading investment pros to worry about a narrow group of stock market leaders.<\/p>\n<p>&#8220;Today&#8217;s an important day,&#8221; Ed Yardeni of Yardeni Research said on CNBC&#8217;s &#8220;<span class=\"waslinkname\">Closing Bell<\/span>. &#8220;This is the day where investors are starting to rotate out of the Magnificent Seven into the rest of the market. I don&#8217;t think this is going to continue to pull the S&amp;P 500 down \u2014 I think there&#8217;s going to be enough money to keep the leading stocks that have done so well fairly elevated, but I think we are going to see more gains in the S&amp;P 493, as well as in the small- and mid-cap stocks,&#8221; he added.<\/p>\n<p>The split trading came after the June report for the consumer price index early Thursday showed headline inflation <span class=\"waslinkname\">declined last month<\/span> and is now up about 3% over the past year. That bolstered confidence that the Federal Reserve will begin to cut interest rates as soon as September. Federal Reserve Chair Jerome Powell indicated in Congressional testimony this week that the central bank was aware that holding rates high for too long could hurt the economy.<\/p>\n<\/div>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-108004842\"><\/div>\n<div class=\"group\">\n<p>&#8220;Investors are rotating. They&#8217;re jumping from the large-cap tech lily pad on to the mid- and small-cap pads, along with real estate,&#8221; Sam Stovall, chief investment strategist at CFRA Research, told CNBC. &#8220;They had been waiting for maybe not a guarantee, but certainly a confirmation that the Fed is likely to start to cut interest rates, and will be doing so not in reaction to a recession.&#8221;<\/p>\n<div style=\"height:100%\" class=\"lazyload-placeholder\"><\/div>\n<p>Activity in the bond market supports this idea. Yields on <span class=\"waslinkname\">U.S. Treasurys<\/span> were down across the board on Thursday, meaning government bond prices were rallying.<\/p>\n<p>&#8220;You&#8217;ve got positive CPI on the back of a slightly dovish Powell,&#8221; Ross Mayfield,&nbsp;investment strategy analyst at Baird, told CNBC. &#8220;Rates are down big, and you have kind of a rotation trade. But the problem with the market being so concentrated in Big Tech is that rotation trade can look like a surface level negative. And I think we&#8217;re seeing some of that today,&#8221; he said.<\/p>\n<p>There have also been signs in recent months that the U.S. economy is softening. A slow growth or recessionary environment would be tough for small-cap stocks, which tend to be more economically sensitive and domestically oriented than larger companies.<\/p>\n<p><em>\u2014 CNBC&#8217;s Sarah Min and Alex Harring contributed reporting.<\/em><\/p>\n<\/div>\n<div class=\"group\">\n<div class=\"RelatedContent-relatedContent\" id=\"RegularArticle-RelatedContent-1\">\n<div class=\"RelatedContent-container\">\n<div class=\"RelatedContent-nonCollapsibleContent\">\n<h2 class=\"RelatedContent-header\">Don\u2019t miss these insights from CNBC PRO<\/h2>\n<div class=\"group\">\n<ul>\n<li><span class=\"waslinkname\">Oppenheimer raises S&amp;P 500 target to 5,900, second highest on Wall Street<\/span><\/li>\n<li><span class=\"waslinkname\">Warren Buffett on his unwavering faith in the country \u2014 &#8216;Never bet against America.&#8217;<\/span><\/li>\n<li><span class=\"waslinkname\">Jefferies says shares of this lesser known global delivery firm are set to soar over 125%<\/span><\/li>\n<li><span class=\"waslinkname\">These types of ETFs could prove winners in the second half<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div id=\"ArticleBody-MobileAdhesion\" class=\"MobileAdhesion-container\" data-module=\"mps-slot\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>In this article .SPX .IXIC .RUT Follow your favorite stocksCREATE FREE ACCOUNT Traders work on the floor at the New York Stock Exchange on June 24, 2024. Brendan McDermid | Reuters Wall Street saw a dramatic shift in market trends on Thursday, with winning and losing stocks swapping places for a day. It may turn &hellip;<\/p>\n","protected":false},"author":1,"featured_media":71944,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-71943","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bussiness","has-thumb","has-featured"],"_links":{"self":[{"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/posts\/71943"}],"collection":[{"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/comments?post=71943"}],"version-history":[{"count":0,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/posts\/71943\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/media\/71944"}],"wp:attachment":[{"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/media?parent=71943"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/categories?post=71943"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/tags?post=71943"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}