Market Movements: Small-Caps Surge as Mega Techs Stall

The S&P 500 and Nasdaq experienced minimal changes as investors shifted focus from technology megacaps to small-cap and financial stocks following positive bank earnings, with Morgan Stanley leading gains. The Dow recouped losses, buoyed by UnitedHealth and Goldman Sachs. Economic data and corporate earnings are anticipated this week.

In a shift marked by changing investor interests, the S&P 500 and Nasdaq displayed minimal changes, catalyzed by a decrease in technology stocks and a sharp pivot towards the small-cap and financial sectors. Following encouraging bank earnings, financial stocks saw renewed interest, propelling Morgan Stanley's shares by 7.8%.

The Dow Jones Industrial Average rebounded partially from earlier selloffs, supported by gains in UnitedHealth and Goldman Sachs. The Russell 2000 index soared 1.5% as investors moved away from pricier tech megacaps, favoring more economically viable small-cap options amidst easing interest rates.

Anticipation builds ahead of key economic reports and corporate earnings announcements, expected to provide further insights into market dynamics. As tech stock valuations remain elevated, investors seek broader opportunities, evidenced by ASML Holding's forecast revision and Intel's product review by China's cyber authority.

(With inputs from agencies.)