In another indication markets are buoyant, meme stocks seem to be back. Thehas gained nearly 60% year to date, suggesting investors are feeling confident enough to pour money into stocks driven by sentiment and speculation.
Small-cap stocks might be next to rally, if Canaccord Genuity's prediction proves right. In a note to clients, strategist Tony Dwyer said theappears to be hitting a bottom relative to the S&P — which means it could start rising soon — especially given the expensive valuation of the top stocks in the broader index. Indeed, the Russell 2000 closed above its 200-day moving average, typically a sign that there's positive momentum behind the movement.
With 40% of the Dow and 30% of the S&P reporting earnings this week, we'll get a clearer sense of whether investor enthusiasm can last.