The Rumbling Sound in U.S. Stocks Is the Return of Risk Appetite

  • Volatile, most-shorted, smaller stocks outperformed this week
  • Outlook still murky but extreme valuation gap lures investors
Fears of U.S. recession persist 
Lock
This article is for subscribers only.

Beneath the din of earnings, clanging economic alarms and the blare of a political circus, U.S. investors are quietly rediscovering their nerve.

With the S&P 500 just touching a record, it may sound odd to suggest there was a lack of confidence to begin with. But gains this year have been built on caution as investors chased the safest, most bond-like shares.