The recent rotation away from growth stocks into value names took something of a pause Wednesday as the tech-heavy Nasdaq Composite outpaced the other major indexes by a wide margin.
The Nasdaq closed up 2% at 11,786, as investors took advantage of cheaper share prices created by a period of underperformance. By comparison, the Dow Jones Industrial Average finished lower by 0.1% at 29,397, while the broader S&P 500 added just 0.8% to hit 3,572.
Over the past five days, the Russell 1000 Value index had outperformed the Russell 1000 Growth index by 8 percentage points. But for a session, at least, the rotation was reversed.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"The underperformance of the Russell 1000 Growth vs. Value indices over the past 10 days has reached a level that suggests a temporary pause in the strong relative performance for Value," writes Canaccord Genuity equity strategist Tony Dwyer.
Wednesday's top-performing stocks included the usual suspects -- Amazon.com (AMZN, +3.4%), Apple (AAPL, +3%) and Microsoft (MSFT, +2.6%).
Other action in the stock market today:
- The Russell 2000 was up 0.1% to 1,736.
- U.S. crude oil futures gained 0.1% to close at $41.49 per barrel.
- Gold futures were off 0.7% to finish at $1,863 per ounce.
The bottom line is that it's probably an overreaction to dump your growth stocks.
After all, many of the best stocks of the pandemic should continue to outperform even after COVID-19 is gone, and many of them are growth stocks. Then there's a case to be made for promising mid-cap stocks, which offer the dual threat of both growth potential and stability.
And for a really growthy play, consider the telehealth stocks we've been evaluating. True, the nascent telehealth sector has already boomed during the pandemic, but the market for telehealth services is forecast to grow by leaps and bounds over the next five years.
Take a look at some of analysts' favorite pure-play telehealth stocks.
-
-
What’s in DeSantis’ $1.3 Billion Florida Tax Relief Bill?
DeSantis' $1.3 billion tax relief bill extends sales tax holidays and makes other tax cuts. Here's what you can buy tax-free — and when.
-
Letter from the Senior Digital Editor: Celebrating Pride
Kiplinger senior digital editor Alexandra Svokos writes at the start of Pride Month.
-
Stock Market Today: Stocks Soar After Jobs Data, Debt Ceiling Deal
The major benchmarks rallied hard into the weekend after a mixed May jobs report and end to debt ceiling drama.
-
Stock Market Today: Stocks Rally on Debt Ceiling News, Manufacturing Data
A slow start turned into a strong finish for stocks thanks to encouraging debt ceiling updates and the latest economic data.
-
Is Chevron Stock Set for a Rebound?
Chevron stock received its second analyst upgrade in as many days, boosting hopes for a recovery in the lagging energy major.
-
Stock Market Today: Stocks Close Lower Ahead of Key Debt Ceiling Vote
The major benchmarks spent most of Wednesday in the red as the House prepares to vote on the debt ceiling deal this evening.
-
Stock Market Today: Stocks Give Back Big Debt Ceiling Deal Gains
The major benchmarks opened solidly higher Tuesday after lawmakers announced a debt ceiling deal, but optimism faded into the close.
-
Stock Market Today: Stocks Jump on Debt Ceiling Progress
The major benchmarks rallied into the long weekend after lawmakers said they're making strides in debt ceiling negotiations.
-
Stock Market Today: Stocks Rise After AI Outlook Sparks Explosive Nvidia Rally
The Nasdaq and S&P 500 made impressive advances today after chipmaker Nvidia forecast record quarterly revenue on AI growth.
-
Is Nvidia Stock Just Getting Started?
Nvidia stock has more than doubled this year already, but analysts say explosive growth in AI gives NVDA plenty more upside ahead.
