Factor Friday: Growth Improving Despite Higher Yields, October 25, 2024
Growth is back on top in the near-term, but rising interest rates remain a concern to monitor closely
Growth is back on top in the near-term, but rising interest rates remain a concern to monitor closely
S&P futures are higher Friday morning after a mixed-to-higher close on Thursday, where the S&P 500 snapped its three-day losing streak. Tesla (TSLA) led gains
USD failing at resistance and moving lower would be the most bullish scenario for equities. USD:JPY above 0.95 and US 10yr Yields above 4.3% would signal continuing USD strength moving forward based on our process.
S&P futures are up 0.5% in Thursday morning trading after US equities posted a third straight decline on Wednesday, the first such streak since early
S&P futures are down 0.1% in Wednesday morning trading after mixed performance on Tuesday, where the S&P 500 logged its first back-to-back decline since early
Typically, we’ve used this serial to highlight overbought and oversold conditions on sector funds, thematic funds, macro indices and individual stocks to highlight short-term dislocations
S&P futures are down 0.5% in Tuesday morning trading, following Monday’s mostly lower session where 10 of 11 sectors declined. Rate-sensitive stocks were notable laggards,
S&P futures are down 0.2% in Monday morning trading, following last week’s gains where the Dow, S&P, and Nasdaq all extended their winning streak to
The bull trend and the macro picture continue to be constructive, but there are signs that sector leadership could swing away from Technology and Mega Cap. Growth shares.
The forward direction of rates will likely have a big impact on leadership. We’d expect a mix of defense (on inflationary recession fears) and Value (on inflationary growth scenarios) to outperform with rates rising. We’d expect Growth factor exposures to outperform if rates end the year on a 3-handle.
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