Overnight US stocks experienced a mixed performance as tech stocks hovered around their all-time highs while the small caps finally started to play some catch up. Solid corporate earnings outweighed some week manufacturing data – over 80% of companies who’ve reported 3rd quarter earnings have beaten analysts’ expectations helping the broad market gain 6% since the season commenced.
As were accustomed to over recent years, there are numerous things to worry about but risk assets / equities keep making all-time highs, the air might be getting thin but the trends undoubtedly still up.
The US small caps have not followed their illustrious tech names higher through 2021 preferring a more sideways approach however overnights strong move finally feels like a breakout is underway, a 10% pop wouldn’t surprise us – as mentioned earlier the encouraging factor is the ASX200 far more correlated to this index than the likes of the S&P500.
