Traders work on the New York Stock Exchange trading floor during early trading on December 13, 2023 in New York City.
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The market also continues to shift toward small-cap stocks, Russell 2000 It rose 1.8% during Monday’s trading session. Tom Lee, head of research at Fundstrat Global Advisors, believes last week’s sharp gains in small-cap indexes signaled the start of a longer-term rotation. The Russell 2000 index rose 6% last week.
“The rally in small caps that started last week will be bigger than the eight-week rally from October to December last year, with the Russell 2000 up close to 30%,” he said on CNBC’s “The Closing Bell: Overtime.” “. ”.
Lee said small-cap stocks look relatively more oversold, with even lower valuations this time around.
“We think this trend could continue for about 10 weeks and could be as high as 40%,” he added, noting that the monthly decline in consumer prices in June was “giving a green light” to gains in small-cap stocks.
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