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Rty futures mark a third consecutive session of
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RTY futures mark a third consecutive session of gains, trading just shy of 2, S&P 500 and Russell 2000 dividend index futures give us an indication as to why investors have preferred large-cap stocks recently. Investors see modest growth ahead for S&P 500 dividend payments. Expressed in index points, S&P 500 firms paid out 75.09 points worth of dividends in 2024 and market pricing suggests that investors anticipate 79.25 index points worth of dividends in 2030. By contrast, investors are pricing that Russell 2000 firms will pay out only 27.25 index points worth of dividends in 2030, down from 29.31 in 2024 (Figure 4). Many traders consider it a suitable way to capitalize on expected market movements in the underlying index. The annual Russell Reconstitution is usually one of the most heavily traded days of the year in the cash equities market, and investors have increasingly been using CME Group E-mini Russell 2000 futures to manage their risk or take advantage of possible opportunities in stock additions and deletions. RTY futures, tracking the Russell 2000 index, traded near 2,050 today, reflecting renewed optimism in U.S. small-cap stocks. Investor sentiment is buoyed by easing inflation data and stronger-than-expected manufacturing PMI, signaling potential upside momentum in the coming weeks for small-cap shares.