economy
March 8, 2026
These momentum trades have fizzled out and are stuck. Where they might go from here
Big tech, precious metals and small caps all have slowed down after big runs. But there is some hope their rallies will pick up again soon.
TL;DR
- Big Tech stocks, which drove the market's bull run, have shown minimal growth in the last six months.
- Precious metals like gold and silver surged in 2025 but have experienced volatility and a drawdown.
- Small caps, represented by the Russell 2000, have underperformed the S&P 500 after an initial strong start to the year.
- Concerns over high capital expenditures for AI, geopolitical headwinds, and mixed economic data are affecting these sectors.
- Analysts suggest Big Tech could rebound with new AI model releases or strong earnings, while gold's outlook remains positive due to geopolitical tensions and central bank demand.
- Small caps are sensitive to interest rate expectations, and changes in these outlooks have impacted their performance.
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