Markets

Bad Week for Stocks Puts Pandemic Safety Trade Back on Top

  • U.S.-China trade tensions resurface, finance pros warn of doom
  • Small caps, value, and riskier firms underperform once again
Photographer: Michael Nagle/Bloomberg
Lock
This article is for subscribers only.

A stock market that was approaching critical velocity last week has quickly reversed course as momentum at its speculative edge faded.

The result was the worst week for the S&P 500 since March, when equities were enduring their most volatile stretch ever. While the last five days were nothing like those, enough similarities exist -- widening losses in small caps and relative strength in tech, namely -- to stir uncomfortable memories.