The S&P 500 is witnessing a shift as smaller stocks gain momentum, indicating a broader market rally beyond the influence of its largest constituents. This trend is highlighted by the equal-weighted S&P 500's rise, suggesting increased investor interest in a wider array of stocks. The movement towards smaller-cap stocks may be driven by valuation concerns or strategic reallocation, as investors brace for anticipated market volatility. Despite the stronger performance of smaller stocks, the overall S&P 500 remains flat, as gains in these stocks are offset by declines in major players like Apple and Nvidia.
The iShares Core S&P 500 ETF (IVV) is trading at $595.49, down 0.02% from its previous close of $595.63 as of 15:40 on Thursday, January 16.