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U.S. Big Cap Stocks Turn Into World’s Top Haven as Risk Rises

  • S&P 500’s rally since Russian invasion may be able to stick
  • ‘They feel like the market is heartless. And that’s correct’
A trader works on the floor of the New York Stock Exchange in New York

A trader works on the floor of the New York Stock Exchange in New York

Photographer: Michael Nagle/Bloomberg

Investors are scrambling for safety as risks mount, from the war in Ukraine to rising interest rates and a global recession. They have found it in the U.S. stock market -- particularly the biggest American companies.

The S&P 500 Index is up more than 8% over the past two weeks, recouping all of its losses since the Russian invasion on Feb. 24. Meanwhile, the tech-heavy Nasdaq 100 has gained almost 11% over the same span. With earnings looking strong and corporate outlooks improving, there are reasons to think these gains can hold despite the myriad risks facing global equities.