After a decade of Big Tech dominance that delivered strong returns to Nasdaq investors, the market may be setting up for a rotation. ...

As we kick off 2026, one of the key themes that investors should be watching for this year is the high likelihood of market rotation. In my view, the S&P 500 will end the year flat to slightly down, but underneath there will beWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on ...

Group 1 - The key theme for investors in 2026 is the high likelihood of market rotation, with expectations that the S&P 500 will end the year flat to slightly down [1] - The analyst has extensive experience covering technology companies and has served as an adviser to several seed-round startups, indicating a strong understanding of current industry trends [1] - The analyst has been a contributor on Seeking Alpha since 2017 and has been quoted in various web publications, suggesting a recognized authority in the investment community [1]

Core Insights - The obesity drugs market is experiencing a revival after a period of consolidation that began in early 2024, attracting healthcare investors since the "great market rotation" themes of Q4 2025 [1] Group 1: Market Trends - The healthcare sector is seeing renewed interest from investors, particularly in obesity drugs, following a consolidation phase [1] - The "great market rotation" in Q4 2025 has contributed to this renewed investor enthusiasm [1] Group 2: Investment Strategy - The company focuses on identifying attractive risk/reward opportunities that are supported by strong price action, aiming to generate alpha above the S&P 500 [1] - The investment approach combines price action analysis with fundamental analysis, avoiding overhyped stocks while targeting undervalued stocks with recovery potential [1] - The investment group specializes in high-potential opportunities across various sectors, emphasizing stocks with strong growth potential and appealing turnaround plays [1]

As we exit 2025 with the backdrop of an expensive S&P 500 that looks poised for a correction, one of our top priorities should be positioning our portfolios for a possible market rotation in 2026. To that end, what I'm focusing on isWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contribut ...

Jeremy Seagull. He's also chief economist for Wisdom Tree. It's good to have you back.Of course, I'm wondering what you make of what's been happening in the market. You see it from Oracle, you see it from Broadcom, and frankly, you see it from a lot of other stocks. This AI trade, at least for the moment, seems a little out of favor.>> Yeah. And and you know, when you sell for 30 times earnings or 40 times earnings, nothing can go wrong. uh and when a few of the narratives wobble uh as they are uh that puts ...

While this helped drag other technology names lower, the Dow rallied along with the Russell 2000 small-cap index and the S&P 500 value index outperformed the growth index during Thursday's trading session. "The name of the game is market rotation. We're seeing small caps, the Dow and cyclicals all start to do better in anticipation of a reacceleration of global growth," said Matthew Miskin, co-chief investment strategist at Manulife John Hancock Investments. Investors also continued to digest the U.S. cent ...

Market Overview - The market is anticipating significant movement due to Nvidia's upcoming earnings announcement, with expectations of a 7% potential move either up or down [1][2] - Historical reactions to Nvidia's earnings have been mixed, with implied volatility decreasing but stock prices pulling back slightly [2][3] - The S&P 500 may be influenced by Nvidia's performance, although recent trading sessions have shown limited reaction to earnings announcements [3][4] Nvidia Insights - Key focus will be on Nvidia's data center numbers, especially after a previous miss in this area, which was attributed to supply chain bottlenecks [4][5] - If Nvidia faces similar issues this time, it could negatively impact the stock more significantly than before [5] Sector Sentiment - The market appears to be adopting a more defensive stance, as indicated by the performance of equal-weighted indices [6][7] - A rotation in market sectors is observed, with both defensive and risk-on sectors not being sold off entirely, which may provide a foundation for the S&P 500 [7][8] Economic Indicators - Credit default swaps for companies like Oracle are rising, indicating elevated equity volatility in the market [9] - Upcoming expirations of VIX options may reduce market volatility temporarily [10] Federal Reserve Nomination - The shortlist for the next Fed chair includes Kevin Hasset and Kevin Walsh, with Rick Reer still in contention [12][13] - The market is looking for a nominee who will maintain a balanced approach to rate cuts, avoiding aggressive policies [14][16] Constellation Energy Update - Constellation Energy shares are rising following the approval of a $1 billion loan to restart the Three Mile Island unit, which was shut down in 2019 [19][20] - The loan aims to revamp the facility to meet U.S. standards for power production, benefiting the utility sector [20][21] Lowe's Performance - Lowe's reported revenue of $20.81 billion, slightly above expectations, and adjusted earnings per share of $3.36, compared to the anticipated $2.97 [23][24] - The company lowered its profit guidance but increased revenue outlook, reflecting a cautious sentiment in the housing market due to higher interest rates [25][26][27]

Core Viewpoint - Small-cap biotech stocks are experiencing a resurgence, driven by market rotation and improving technical indicators, with healthcare emerging as a constructive sector [2][4] Industry Overview - The Health Care Select Sector SPDR Fund (XLV) has increased by 11.09% in 2025, while the iShares Biotechnology ETF has gained approximately 25% year-to-date [2][3] - Analysts suggest that capital is flowing out of high-flying AI stocks into more attractive healthcare and biotech opportunities [3][4] M&A Activity - Increased mergers and acquisitions (M&A) activity in the biotech sector has been noted, with significant deals including Pfizer's $10 billion acquisition of Metsera and Roche's $3.5 billion acquisition of 89bio [4][5] - This M&A activity is expected to bolster potential upside for both large-cap and small-to-mid-cap biotech companies [4] Methodology for Stock Selection - The list of the best small-cap biotech stocks was curated based on companies with market capitalizations between $300 million and $2 billion, focusing on those with the highest upside potential as of November 10, 2025 [8] Company Highlights - **Viridian Therapeutics, Inc. (NASDAQ:VRDN)**: - Upside potential of 36.71% with a cash position of $888 million and key patient enrollments in late-stage clinical studies [10][11][12] - **UroGen Pharma Ltd. (NASDAQ:URGN)**: - Upside potential of 49.17%, reporting a significant increase in demand revenue and a cash position of $127.4 million [14][15][16] - **Liquidia Corporation (NASDAQ:LQDA)**: - Upside potential of 55.49%, with YUTREPIA achieving profitability earlier than expected and a cash position of $157.5 million [19][20][22]

Core Insights - The market is experiencing a rotation, with pressure on mega-cap stocks while sectors like healthcare and financials are performing well [1][3][5] - Since early August, the broader market has shown signs of pressure, masking the improving breadth of the market [2][4] - The S&P 500 is up 16% for the year, with a notable increase of 37% since April 8, indicating a stealth rally [5][6] Sector Performance - Healthcare has surged significantly, while financials have also shown strong performance [3][5] - Growth sectors such as technology, communication services, and consumer discretionary are underperforming compared to other sectors [3][6] - The equal-weighted index is gaining traction, providing a clearer picture of market performance beyond large-cap stocks [4][5] Small Cap Dynamics - Non-profitable small-cap names have dominated the market, leading to profit-taking in these areas [6][7] - Traditional small-cap value names have struggled, highlighting a shift in market dynamics [6][7] Technology Sector Insights - The technology sector is seeing a changing of the guard, with notable winners excluding the major "MAG 7" names [7][8] - Cisco is highlighted as a strong performer within the technology space, indicating potential investment opportunities [8]