PHNOM PENH: The CSX Index is currently at 476.78 Points down 5.7 Points or 1.18%

The national bank of Cambodia's Daily Exchange Rate is 4,085KHR to the USD$

Fears of a potential economic slowdown are clouding the outlook for value stocks, which have outperformed broader indexes this year in the face of surging inflation and rising interest rates.

Value stocks - commonly defined as those trading at a discount on metrics such as book value or price-to-earnings - have typically underperformed their growth counterparts over the past decade, when the S&P 500's (.SPX) gains were driven by tech-focused giants such as Amazon.com Inc (AMZN.O) and Apple Inc (AAPL.O).

That dynamic shifted this year, as the Federal Reserve kicked off its first interest rate-hike cycle since 2018, disproportionately hurting growth stocks, which are more sensitive to higher interest rates. The Russell 1000 value index (.RLV) is down around 13% year-to-date, while the Russell 1000 growth index (.RLG) has fallen about 26%.

This month, however, fears that the Fed's monetary policy tightening could bring on a U.S. recession have shifted the momentum away from value stocks, which tend to be more sensitive to the economy. The Russell value index is up 0.7% in July, compared with a 3.4% gain for its growth-stock counterpart.