Insights 
VT 
Weekly Performance Summary
As the week draws to a close, major indices are set for weekly gains, with the S&P and NASDAQ at record levels. The Russell 2000 has been the top gainer for the week with an increase of over 3.3%, and the Dow industrial average is up 2.37%.
The NASDAQ, leading gains since April, has experienced some rotation away from mega tech stocks but still posts a weekly increase of 1.58%. The weekly performance summary is as follows: Dow industrial average up 2.37%, S&P index up 1.71%, NASDAQ index up 1.58%, and Russell 2000 up 3.346%.
Markets are heading into the holiday stretch on solid footing. Price action in recent sessions has shown investors favouring broader participation, as capital begins shifting away from tech-led outperformers toward value and smaller-cap names. This is evident in the outsized move in the Russell compared with its large-cap peers. For context, while the S&P and NASDAQ continue to push into record territory, the Russell has pulled sharply higher, indicating renewed risk appetite beyond the well-trodden names.
Sector Rotation and Market Sentiment
The gains across the board have clearly been underpinned by growing confidence in the soft-landing narrative. Data this week has not provided any unexpected disruptions, giving traders room to lean into equity exposure without needing to aggressively hedge short-term downside risks. This absence of pressing macroeconomic concerns, at least for the moment, provides a stable backdrop in which to reassess longer-term strategies.
From a flow perspective, large options positioning earlier in the week pointed to elevated call interest, particularly in the broader indices and small-cap baskets. That setup appears justified, considering the steady upward grind in spot prices we’ve seen. Options traders should now be aware of the potential for gamma effects to amplify short-term moves, especially in thin holiday trade where liquidity may be patchy.
With tech having previously done the heavy lifting, recent orientation toward industrials, financials, and small caps should not be overlooked. That kind of rotation tends to have persistent follow-through if macro remains steady. It suggests that positioning had been lopsided and is now adjusting in favour of sectors that offer better valuation or earnings sensitivity to domestic recovery themes.
