Inflation remains elevated.
How have investors adjusted?
Today’s chart illustrates the performance of three major stock market indices since inflation began to pick up significantly back on February 10th.
Initially (i.e. three months), the Dow led.
Since mid-May, however, it has been the tech-laden Nasdaq 100 (orange line) that has outperformed.
What is the Russell 2000 made up of?
The Russell 2000 is a stock market index that tracks 2000 small-cap companies.
What is meant by Nasdaq 100?
The Nasdaq 100 is a stock market index of the 100 largest Nasdaq Stock Exchange listed companies. A large proportion of those 100 companies are in the tech sector.
What is the S&P 500?
The S&P 500 is a market capitalization weighted index of 500 large publicly traded U.S. companies.
What is the Dow?
The Dow is short for Dow Jones Industrial Average and is a price weighted index of 30 publicly traded large U.S. companies and has been in existence since 1896.