S&P 500’s next leg up hinges on battered stocks getting revenge

As the share index went from one record to another in the first half of 2024, some grew concerned that few members outside of tech giants were participating in the rally

Strategas Securities' Todd Sohn said: 'While all of the best players from Nvidia to Microsoft pause their rally, the rest of the team is holding up their end of the bargain.' 

Corners of the stock market outside of Big Tech are barrelling higher as traders grow more confident about interest-rate cuts in the near future thus fuelling hopes that another leg of the bull run could be in the offing.

A version of the S&P 500 that strips out market-cap bias just posted the best two-week stretch relative to the S&P 500 since November 2020.