The NASDAQ 100 is an index made up of 102 equity securities issued by 100 of the largest non-financial companies. On the contrary, the Russell 2000 is most widely used for small-cap stocks.
On the day, the NASDAQ is down almost 1.7% today and nearly FLAT year to date! On the other hand, the Russell is actually UP over 0.5% today and up nearly 13% year to date.
This is an indication that investors may be concerned that the stimulus trade is falling out of favor. The “stay at home stocks” are being sold and the smaller cap “go outside” stocks are being bought. If traders continue to feel this way, expect this trade to continue.
Learn more about index trading opportunities.