The S&P 500 achieved another record closing high on Wednesday as technology and communication-services companies continue to drive gains for large-cap stocks. However, this upward trend has not been mirrored in small-cap equities.
Disparity in Sector Performance
According to FactSet data, the S&P 500 has seen a rise of 2.1% this month, boosted primarily by the information-technology and communication-services sectors, which have experienced a surge of over 6%. Conversely, small-cap stocks in the US, as measured by the S&P Small Cap 600, have declined by 3% in 2024.
Large-Cap Versus Small-Cap Performance
Bespoke Investment Group analysts commented that there is a noticeable discrepancy in sector performance among large-cap stocks. Interestingly, the performance of small-cap stocks has been more uniform but unfortunately skewed toward the downside.
Exceptional Sectors
Although large-cap stocks are outperforming small caps across the board, there are two exceptions highlighted in the chart above. The real estate and materials sectors have seen declines in both the S&P 500 and S&P Small Cap 600. However, the year-to-date declines are relatively smaller for small caps in these sectors.
Wednesday’s Top Performers
On Wednesday, the energy, communication-services, and tech sectors were the leading contributors to the S&P 500’s ascent to its fourth consecutive record high, according to FactSet data.
Netflix Soars as S&P 500’s Top Performer
Big Tech Fuels S&P 500’s Rise
Tesla’s Latest Earnings Awaited
Mixed Results for Major U.S. Stock Indexes
Small-Cap Stocks Experience Decline
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