Wall Street is rebounding at midday, with the Dow, S&P 500, and Nasdaq all moving higher as oil prices pull back and tech stocks contribute to gains. FINTECH.TV correspondent Mark Payton joins Remy Blaire live from the Cboe trading floor in Chicago to break down the session and a growing trend in small-cap stocks.
Payton says lower oil prices are helping ease some concerns about inflation, while the VIX is moving lower, suggesting investors are less worried about near-term volatility. He notes that the Russell 2000 gained about 2% last week even as the S&P 500 and Nasdaq declined, a sign investors may be looking beyond the largest technology companies for opportunities, and that small caps are higher again today, though trailing the broader market.
Looking ahead, Payton says the rebound comes ahead of Wednesday’s Federal Reserve decision and a major week of corporate earnings, including reports from Microsoft, Alphabet, and Amazon. He says the key question is whether the rally can continue and whether more companies will begin to participate in the market’s gains.