Major U.S. stock indexes are being hit by the 'Big Seven', risk appetite increases for small-cap stocks to dominate

On July 12th, Jinshi Data News reported that the longest continuous rise of the S&P 500 index since November last year came to a halt on Thursday. The so-called "Tech Seven Giants" saw the largest scale of investor selling in nearly a year, as inflation data triggered bets on the Fed's fastest rate cut in September. Investors withdrew from this year's winners, leading to the worst performance of the Anshuo MSCI US Momentum Factor ETF since May. This turbulence has brought some unusual data. Although 400 component stocks in the S&P 500 index rose, the index fell by 1%. The Benchmark index, which excludes Market Cap weighting, rose by 1.2%, the largest increase since November 2020, outperforming the weighted index. The Russell 2000 Small Cap Index, which consists of mostly lower credit-rated and higher borrowing-demand stocks, rose by 3.2%, achieving its best performance compared to the S&P 500 index since March 2020. An index tracking the "Tech Seven Giants" once fell by 4.1%, marking the largest decline since July 2023.