Below are highlights from the NDW Morning Update Video for the morning of 07/02. Access the the video on the NDW Morning Update Video page. 

• The market-cap-weighted S&P 500 (SPX) pulled back modestly over the past week but remains up roughly 9% year-to-date. Performance continues to trail the equal-weighted S&P 500 (SPXEWI) by more than 2 percentage points, reflecting ongoing strength in the average stock relative to the index’s largest constituents.
• The Russell 2000 (RUT) has completed three consecutive buy signals and is now up approximately 21% year-to-date, outperforming the S&P 500 by more than 10 percentage points in 2026. This strength is also evident in our Asset Class Group Scores, where multiple small-cap groups rank above the 90th percentile, underscoring the significant improvement in small-cap leadership this year.
• Within our DALI Sector Rankings, Health Care added 50 signals during June, advancing to third place and firmly into overweight territory. The sector’s rise has coincided with notable weakness in Energy, which saw its signal count decline by roughly 50% over the course of the month.
• The market is currently assigning a greater than 50% probability of a rate hike at the September FOMC meeting. Meanwhile, the iShares 20+ Year Treasury Bond ETF (TLT) recently completed a double-bottom breakout above $85.75, a move that comes as Treasury yields start to trend higher entering the second half of the year.
• This week’s featured research piece highlights our Smart Beta Quilts, which track factor performance across a variety of market segments. Within U.S. equities, Growth and Momentum have reestablished themselves as the leading factors, currently occupying the top spots in the rankings.