Small-cap stocks in the US are being bought, indicating the start of the high stock season from this week and implied by history.

November 26, 2024 11:02 JST (excerpt)
The Russell 2000 index rose 1.5% and is on the verge of reaching a new all-time high.
U.S. stocks tend to rise from the Tuesday before Thanksgiving to the second trading day of the new year.
In the U.S. stock market on the 25th, buying entered small-cap stocks considered the riskiest. The Russell 2000 index rose 1.5%, approaching a new all-time high on a closing basis after about 3 years.
This week historically marks a week when the U.S. stock market enters a seasonal uptrend pattern. According to the Stock Traders Almanac, the S&P 500 index has risen with an 80% probability since 1950 from the Tuesday before Thanksgiving to the second trading day of the new year, recording an average increase of 2.6%. Small-cap stocks have performed even better, with the Russell 2000 index rising an average of 3.3% since its inception in 1979.

Jeffrey Hirsch, editor of the Stock Traders Almanac, said in a telephone interview, "It is difficult to go against the market trend right now. Going against the trend is not possible." He stated, "The S&P 500 has risen by over 20% this year, but this does not rule out the possibility of further increases by the end of the year."