The bull market in stocks has been quite volatile in recent days as it rotates and broadens. The triggering event was a better-than-expected June CPI report on Thursday, July 11. Since then, the financial markets priced in a 100% probability of a Fed rate cut in September.
Investors responded by rotating out of the S&P 500's Magnificent-7 into the S&P 1493 (i.e., 1500 minus 7). Interest-rate sensitive stocks--especially in the S&P 400 and S&P 600 Financials, Real Estate, Utilities, Industrials, and Materials sectors--rose the most (chart).
