The US markets are showing mixed momentum on Friday, November 21, as major indices rise while small-cap stocks lag. Investors are weighing strong corporate earnings against macroeconomic uncertainties, including inflation data and the Federal Reserve’s upcoming policy guidance. The backdrop of a slightly stronger US dollar adds another layer of complexity for equities and commodities.

US Indices Show Broad Strength

The Nasdaq is leading gains with a 0.48% increase to 22,183.21, reflecting ongoing strength in the technology sector. The S&P 500 is up 0.40% to 6,565.13, while the Dow Jones Industrial Average adds 0.38% to 45,924.46. These gains suggest that investors remain broadly optimistic about corporate earnings and economic resilience despite lingering concerns over inflation and potential rate hikes. Meanwhile, the S&P/TSX Composite index in Canada shows marginal movement, indicating a cautious tone in North American equities outside the US.

Small-Cap Struggles and Emerging Market Pressure

The Russell 2000, representing US small-cap stocks, is down 1.82% to 2,305.11, reflecting investor risk aversion toward smaller companies with higher volatility exposure. Similarly, Brazil’s IBOVESPA has declined 0.85% to 154,060.08, impacted by regional economic uncertainty and commodity price fluctuations. The divergence between large-cap resilience and small-cap weakness highlights the selective nature of current market sentiment, where investors favor more stable, established companies.

Volatility and Currency Dynamics

The CBOE Volatility Index (VIX) jumped 6.64% to 25.23, signaling heightened market anxiety. Rising volatility suggests investors are hedging positions as uncertainty persists over macroeconomic indicators and the trajectory of Federal Reserve policy. The US Dollar Index gained 0.12% to 100.27, reflecting modest strengthening of the dollar, which can pressure commodity-linked and emerging market equities but benefits dollar-denominated assets.

Looking ahead, investors will likely monitor the interplay between economic data, corporate earnings, and Fed communications. Key factors to watch include inflation trends, interest rate guidance, and global market developments. While large-cap US stocks show resilience, small-cap and emerging market pressures pose risks, offering opportunities for tactical positioning. Volatility levels suggest careful risk management will remain critical in navigating the market’s next phase.