Commentary
Last week’s performance was quite diverse across equity markets. While most major US indices closed the week in green, gains almost solely came from large growth stocks (while market-cap weighted S&P 500 gained 1.3%, its equal-weight counterpart lost 0.6%). Small-cap stocks were the weakest performers, as shown by a sizeable decline in Russell 2000 index (a US small-cap benchmark).
In general, cyclical sectors outperformed, with Technology being last week’s strongest gainer. Interestingly, tech stocks were partly pushed by the better-than-expected results of the cloud monitoring and security company Datadog (DDOG). Compared to consensus forecasts, Datadog reported 32% higher earnings, while also increasing both revenue and profit estimates for full year. As company’s client base is mostly composed of tech businesses, the news had a positive impact on the broader technology sector.
