Speculative Fervor Builds at Fringe of a Quiet Week for S&P 500

Friday, June 15, 2018 11:55 PM
By Sarah Ponczek

ETF that tracks new IPOs jumped more than 4% this week
Most shorted stocks, those with weak balance sheets outperform
(Bloomberg) --
It was an outwardly boring week in the S&P 500. But in chancier corners of the market a decidedly risk-on tone is building, evidence traders are awakening after three months of shell shock.

While broad benchmarks sat still, speculative shares soared, among them companies that recently went public, stocks favored by short sellers, and firms with weaker balance sheets. A seven-week rally was preserved in the Russell 2000, which was joined in record territory by an index of microcaps.