Spring is coming for value stocks?
Stocks are down across the board as the Federal Reserve begins its rate hike cycle, with growth stocks leading the way as soaring interest rates are eroding the value of their future earnings.
So far this year, the $Ishares Russell 1000 Value Etf (IWD.US)$ is down 12%, while the $Ishares Russell 1000 Growth ETF (IWF.US)$ has plunged 25%, according to FactSet and Dow Jones market data, giving value stocks their largest lead since 2002. If the 13-point lead continues for the rest of the year, value stocks will have their largest lead since 2001.
So far this year, the growth index has fallen sharply due to the declining performance of some technology giants, with $Meta Platforms (META.US)$ down 49%, $NVIDIA (NVDA.US)$ down 42% and $Amazon (AMZN.US)$ down 30%. Energy stocks, on the contrary, have become the only $S&P 500 Index (.SPX.US)$ rise this year, with $Exxon Mobil (XOM.US)$ shares up 42% this year and $Chevron (CVX.US)$ up 23%.
So far this year, the $Ishares Russell 1000 Value Etf (IWD.US)$ is down 12%, while the $Ishares Russell 1000 Growth ETF (IWF.US)$ has plunged 25%, according to FactSet and Dow Jones market data, giving value stocks their largest lead since 2002. If the 13-point lead continues for the rest of the year, value stocks will have their largest lead since 2001.
So far this year, the growth index has fallen sharply due to the declining performance of some technology giants, with $Meta Platforms (META.US)$ down 49%, $NVIDIA (NVDA.US)$ down 42% and $Amazon (AMZN.US)$ down 30%. Energy stocks, on the contrary, have become the only $S&P 500 Index (.SPX.US)$ rise this year, with $Exxon Mobil (XOM.US)$ shares up 42% this year and $Chevron (CVX.US)$ up 23%.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
