President Biden’s announcement Sunday that he wouldn’t seek re-election augmented the uncertainty and promised to refocus market attention on the presidential campaign. The small-cap index rose 1.7% this past week, extending its 2024 advance to 7.8%, while the S&P 500 dropped 2%, trimming its gains to 15%. Analysts expect the septet to report a 28% jump in earnings for the second quarter, while profits from the other S&P 500 stocks slip 1%. The small number of stocks powering the S&P 500 has worried investors, making them question the sustainability of the rally. “That creates a healthier market, a more stable market, and gives more legs to the bull market, frankly."

Source: Wall Street Journal July 22, 2024 07:17 UTC