US jobs market blows past expectations, adding 256,000 jobs in December

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S&P 400 (^SP400)

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At close: January 8 at 4:43:30 PM EST

The reason mid-cap stocks could outperform small, large caps in 2025

With some economists anticipating the Federal Reserve to hold interest rates higher for longer, what does it mean for equity markets (^DJI,^GSPC, ^IXIC)? Apollo Global Management (APO) chief economist Torsten Sløk joins Julie Hyman and Josh Lipton on Market Domination to share his market outlook if the Fed does ease its rate-cutting cycle in 2025. "The challenge for the S&P 500 at the moment is that it's so highly concentrated," Sløk says, explaining that "roughly a third of the index is made up of the top ten companies in the S&P 500." He adds, "We all know how important Nvidia (NVDA) is and how critical it has been for returns this year." The economist underlines the biggest problem components of the Russell 2000 small cap index (^RUT): 40% of them "have no earnings." "So that means that if rates are higher for longer, that means that small-cap companies will continue to struggle with earnings and therefore not being able to service their debt servicing costs," he explains. "That brings you to the conclusion that if you have to be in public equities, the mid-cap or S&P 400 (^SP400) still continues to look like the most interesting place to be, simply because the risk is too high when it comes to the large-cap companies because it's so focused on a handful of names and for the small-cap companies, again, in my view, the bubble in small caps is still growing and continues to be significant." Catch Apollo Global Management's Torsten Sløk also weigh in on why the Fed should keep their rates higher for longer. Disclosure: Yahoo Finance is owned by Apollo Global Management. For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Naomi Buchanan.

Yahoo Finance Video 30 days ago

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Why investors should be thinking more about mid-cap stocks

Alger Executive Vice President and Portfolio Manager, Amy Zhang, joins Wealth to discuss the benefits of investing in mid-cap stocks, noting the category to be a long-time outperformer when compared to the S&P 500 (^GSPC) and Russell 2000 small-cap index (^RUT). Zhang says investors are "entering a golden age for both small and mid-cap in the next one to five years." She highlights Vertiv (VRT) as a top pick in the space, expecting more revenue and profitability growth in 2025 as artificial intelligence (AI) demand continues. She also calls AppLovin (APP) a "high quality company" with significant growth potential. To watch more expert insights and analysis on the latest market action, check out more Wealth here. This post was written by Kaitlin Propeck.

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Valuations continue to climb. How is Wall Street viewing it?

Valuations continue to climb in late 2024, pushing market indexes and strategist forecasts higher. Yardeni Research president Ed Yardeni told Yahoo Finance earlier today that earnings may grow "faster for longer without a recession"; his firm has raised its S&P 500 (^GSPC) year-end target for 2025 to 7,000 and believes it could go as high as 10,000 by the decade's end. Yahoo Finance anchor Julie Hyman joins Asking for a Trend to weigh in on what's driving valuations. To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend here. This post was written by Luke Carberry Mogan.

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Docusign to join S&P Midcap 400 on October 11

Docusign (DOCU) shares are moving higher by over 7% in Tuesday's session following headlines that it will replace MDU Resources Group (MDU) in the S&P Midcap 400 (^MID) starting Friday, October 11. Julie Hyman and Josh Lipton report on this news. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. This post was written by Luke Carberry Mogan.

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