Major averages finished Friday slightly lower on mixed volume that was higher on the S&P 500 but lower on the NASDAQ Composite. The Russell 2000 closed higher, marking its 11th gain in a row.
Since the election, capital has been shifting away from growth into value stocks as the market is less kind to the higher PE growth stocks as interest rates rise. This would partly explain the under-performance of the tech-heavy NASDAQ-100 compared to the other market averages. Meanwhile, sectors that can benefit from Trump's policies such as transports, financials, infrastructure, industrials, healthcare/biotech, and retailers have been strong. Indeed, the lagging Dow Transports are catching up to the Dow Industrials for the first time since early 2015.
Futures are up after words from Federal Reserve Vice Chair Stanley Fischer. He believes gentle tightening could help spur the economy while reducing the deficit.
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