Markets Insights

The iShares iBoxx High Yield Corporate Bond ETF (HYG) was a little concerning this week.

The Russell 2000 declined approximately 1.1% this week, underperforming the Dow Jones Industrial Average but outperforming the technology-heavy Nasdaq Composite.

The Russell 2000 declined approximately 0.5% this week, underperforming its larger-cap peers as investors rotated away from higher-beta areas of the market following a strong first-half run in small-cap stocks.

The Russell 2000 continued to underperform despite the broader market’s resilience. Small-cap stocks faced headwinds from higher Treasury yields and a renewed preference for mega-cap technology names. While the Russell remains one of the year’s strongest-performing major indexes, this marked its second consecutive weekly decline, suggesting investors are becoming more selective after a strong first-half rally.

The Russell 2000 was one of the market’s standout performers again this week, continuing its impressive run and extending to fresh all-time highs.

HYG turned in a solid week, reflecting continued confidence in the corporate credit market.

HYG had a constructive week as credit markets continued to benefit from a “risk-on” environment.

HYG had a solid week as risk appetite improved and credit spreads remained relatively tight.

HYG finished the week modestly lower as rising Treasury yields and renewed concerns about inflation pressured the high-yield credit market.

HYG finished the week modestly lower as rising Treasury yields and renewed inflation concerns weighed on the high-yield bond market.