Wall Street Weekahead: Small caps join market rally but pandemic could derail them

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U.S. small caps joined in the broad market rally in the days after Election Day as investors priced in the likelihood of a divided Washington with Democrat Joe Biden president and Republicans maintaining their Senate majority.

A U.S flag is seen on the New York Stock Exchange in the Manhattan borough of New York City, following the 2020 U.S. presidential election, New York, U.S., November 6, 2020. REUTERS/Carlo Allegri

However, smaller companies remain likely to bear the brunt of the pandemic, which is reaching record levels in the United States. Those worries are reflected in small-caps underperformance since Election Day. The Russell 2000 index of small cap stocks is up 2.6% since Nov. 3, a little more than half of the 4.2% gain in the large cap S&P 500 index over the same time. The underperformance mirrors that of the last five years, in which the Russell is up 38.2% compared with a 67% jump in the S&P 500.

“The implications of the ongoing second COVID-19 wave in Europe and the third wave in the U.S. remains uncertain and the results of the vaccine trials by the end of this month remain an important catalyst,” analysts at Barclays wrote in a note Thursday, recommending that investors remain hedged against a steep decline in U.S. small-caps.

 

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American - stand up and sound off. We, the people don't use guns like serial-rapist Trump's bull-dogs attacking ballot processing centers; we, the people don't need/want the Trumps, Mitch McConnell mafia families, the Confederate's lies tricking us into an American Civil War II

Idiots vote for SLAVERY Idiots hand over their power to the BANKERS CARTEL DEBT TO DEATH. Money doesn't work. One can't eat money. Ants bees work without money. Monkey's don't work for money to eat, drink & shelter HOWEVER BRAINWASHED SLAVES THINK MONKEY'S ARE DUMB. SLAVES DO!

failing financial system needs massive reform. Don't do debt jubilee just for the elites, we all need it as it will lesson the control the elites have over our society.

USElectionResults2020 | 'We are going to win Pennsylvania' - Democrat Joe Biden said as he inched closer to victory

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$NIO $FSR $TSLA going to the moon no matter who wins this wild election! 🚀

'Have you been set apart from sin and the world? GOD judges Sin; HE has judged it before and HE will judge it again. GlobalHolyVigil

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