Small-cap stocks are navigating a fog of uncertainty surrounding the U.S. economy and Federal Reserve policy, analysts say. Despite a strong rally over the past month, where the Russell 2000 Index (RUT) climbed 3%, outpacing the S&P 500’s 1.4% gain, questions remain about the sustainability of this momentum. Investors are...
Analyst Joe Tuckey suggests that a larger rate cut from the Federal Reserve may indicate “growth concerns and economic trouble ahead.” The U.S. dollar has been sliding as markets brace for the Fed’s anticipated interest rate cut on Wednesday. The size of the cut could determine whether the dollar weakens...
Whether the Federal Reserve can prevent a recession in time could be crucial. A Fed interest-rate cut on Wednesday seems all but certain, but how the stock market reacts to this loosening of monetary policy remains highly uncertain. History offers some insight: why the Fed is cutting rates matters more...
On Thursday, the Russell 2000 index, which focuses on small-cap stocks, saw a strong rise, underscoring the recent outperformance of U.S. small-caps over the S&P 500 in the third quarter. Despite experiencing steeper losses than large-cap stocks in September, small-caps have shown resilience. “Small-cap stocks got a boost when the...
Nvidia stock has rebounded, climbing 4%, but investors are still asking a crucial question: Can artificial intelligence drive enough revenue to justify the massive spending on GPUs and other AI hardware? CEO Jensen Huang has faced this question repeatedly. While he addressed it during Nvidia’s August earnings call, the market...
“The financial sector is much more than just banks,” says DataTrek Research. Financial stocks in the S&P 500 have outperformed the broader U.S. stock market over the past year, reflecting optimism about the economy, according to DataTrek. “Even if you’re not overweight on financials, their continued leadership reassures that equity...
