Investor confidence is gaining traction as the momentum factor takes the lead in the US equity markets, driving a positive rally across major indices. This renewed focus on trending stocks is contributing to the upward movement, despite the sideways price action observed earlier in December. However, the underlying market dynamics reveal significant sector performance discrepancies, with a disconnect between market breadth and the S&P 500's performance, a situation not seen since 1997. This suggests potential caution for investors, as a limited number of stocks may be driving the overall index gains.
The SPDR Portfolio S&P 500 Growth ETF (SPYG) rose 1.33% to $90.54 at 10:40 AM on Wednesday, December 11.