Markets Rotate Toward Broader Equity Participation

In January, global markets rotated away from narrow mega-cap leadership toward broader equity participation, with the Russell 2000 and S&P MidCap significantly outperforming large-cap benchmarks. The S&P 500 Equal Weight has outpaced the cap-weighted S&P by nearly threefold, while silver surged about 25% and Asian equities led regional gains. Strategists view this as an allocational rotation that is constructive but vulnerable to upcoming policy and data risks in February.