Wall Street’s ‘Great Rotation Trade’ Takes a Break: Markets Wrap
- Small caps get hit with almost 2% slide after stellar rally
- Initial jobless claims show further cooling in US labor market
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A weeklong decline in megacap technology stocks broadened Thursday to encompass smaller firms and financial shares as signs of economic weakness overwhelmed optimism over rate cuts.
Almost every major group in the S&P 500 fell, with the US equity benchmark down nearly 1%. A rally that drove the gauge to almost 40 record highs this year spurred expectations of a pullback or at least consolidation. And those calls have grown after a wide array of companies soared in just a few days, outperforming the leaders of the bull market — the cohort of big techs.