Speculative stocks outperforming
The S&P 500 continues to trade lower by 0.1% while some of the more speculative stocks are showing relative strength. The small-cap Russell 2000 (+0.6%), iShares Micro-Cap ETF (IWC 154.00, +0.69, +0.5%), and Renaissance IPO ETF (IPO 63.07, +0.35, +0.6%) are outperforming with modest gains. One reasonable explanation for this discrepancy is that investors are still feeling emboldened to take risker positions with a Fed not expected to officially announce a plan to taper asset purchases until August or September. As mentioned in a previous update, the latter was posited by economists polled by Reuters. Separately, the information technology sector (+0.4%) has emerged as the leader in the S&P 500, thanks to Apple (AAPL 126.78, +0.67, +0.5%), NVIDIA (NVDA 707.17, +10.13, +1.5%), and Oracle (ORCL 83.11, +0.81, +1.0%).