Equal Opportunity Recovery Weaning S&P 500 of Its Megacap Habit
- Smaller stocks in the S&P 500 carrying the load in latest gain
- Bulls see breadth of rally as sign gains can continue
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As stock rebounds go, this one has been big, sudden, and decidedly broad, with signs megacap titans are relaxing the stranglehold in which they’ve held the S&P 500 for two years.
While the rally took a breather last week, it remains the best annual start for U.S. equities in almost three decades, with $1.7 trillion added to share values. Notable in the surge has been the role of smaller companies -- or less-gargantuan ones, anyway. An equal-weighted version of the S&P 500 that strips out market-cap biases is beating the regular gauge by 2.3 percentage points.