IWM Stock Recent News

Investors may be shaken up by the recent volatility in the stock market, and now more than ever, it is important to stick to fundamentals and attempt to understand how and where money will begin to shift in the next quarter or two. Ideally, investors can get on these trends before they take on momentum during the whole market shift, where a few asset classes come to mind.

Chipmaker Nvidia has been the best-performing stock in the S&P 500 since January 2023. The Russell 2000 tracks small-cap companies that account for 5% of U.S. stocks by market value.

Markets are bracing for the most-anticipated quarterly report in Nvidia (NVDA), but there's other aspects of the markets to keep your eyes on. From small caps to major corporations, Nicole Petallides, Ben Lichtenstein and Don Kaufman break down the technical trends of the iShares Russell 2000 ETF (IWM), Conocophillips (COP), and Disney (DIS).

Small-caps performance lags behind large-caps, historically cheap valuations. Reasons for small-caps lagging behind include weaker company quality, high interest rates, and decreased M&A activity. Analysts predict a positive outlook for small-caps, with expected earnings growth and potential outperformance in the next 18 months.

Small caps historically perform well after Fed rate cuts, with potential for outperformance against large caps. Optimism among small business owners and improving economic conditions could benefit IWM in the coming quarters. Despite near-term bearish risks and weak sentiment, IWM's valuation, technical indicators, and profit growth forecasts suggest a favorable outlook.

India small-caps only recently took the lead on the US, with a big jump higher over the last 18 months or so. Small-caps in other countries have been poor options for US investors relative to owning something like the S&P 500 ETF.

Following a period subjugated by the "Magnificent Seven" mega-cap tech stocks, investors are now looking beyond the big techs.

24-7 Wall Street Insights Small-cap stocks are showing signs of breaking out of a bear market that has lingered since 2022.

These positions look to have solid upside and trade at a great valuation.

One ETF is a great pick with small-cap stocks roaring back. Another owns long-term bonds, which should perform well if the Fed cuts interest rates.