‘Tis the season for stock rotations. Stock market sectors tend to fall in and out of favor with regularity, shifting price patterns more often than well-diversified indexes. Indexes, too, see rotations, especially when there are significant differences among their underlying composition of companies. And, depending on which scenario one favors for the U.S. and global economies – expanding or contracting growth -- signs are that the second half of 2017 might see turbulence in how the major indexes perform relative to each other – extracting from the general trend in U.S. equities. To illustrate the differences, we compare and contrast three key indexes for U.S. stocks – the Russell 2000, S&P500®, and Nasdaq 100.
The first key difference in them is company size. Both the S&P500® and Nasdaq 100 are composed of publicly-traded companies with large market capitalization, while the Russell 2000 is designed to track small-capitalized companies. The largest companies in the Nasdaq 100 and S&P500® are mega-stocks with familiar names, such as Apple, Microsoft, Amazon, Facebook, and Alphabet, the holding company of Google, with market capitalization in the hundreds of billions of dollars.
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ESM8 Jun '18 Emini S&P 267125 -2175 Apr 20, 3:59 PM | GCLM8 Jun '18 GBXCrdOil 6840 7 Apr 20, 3:59 PM | ZCN8 Jul '18 GBX Corn 3854 -54 Apr 20, 1:19 PM | ZBM8 Jun '18 GBX BOND 143030 -220 Apr 20, 3:59 PM | IDXM8 Jun '18 ICE $Index 90095 20 Apr 20, 3:59 PM | GNGK8 May '18 GBXNatGas 2739 79 Apr 20, 3:59 PM | GGCM8 Jun '18 GBX CMX GC 13383 -105 Apr 20, 3:59 PM | 6EM8 Jun '18 GbxEuroFX 12332.5 -56 Apr 20, 3:59 PM | ZSN8 Jul '18 GBX Soybn 10402 -86 Apr 20, 1:20 PM |
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