Fed Rate Cut Assurance, Republican Sweep Odds Propel Rotation From Tech To Small Caps: Analysts Weigh In
Portfolio Pulse from Piero Cingari
Investors are rotating from large-cap tech stocks to small-cap equities, driven by expectations of a Federal Reserve rate cut in September. The iShares Russell 2000 ETF (NYSE:IWM) has shown significant outperformance relative to the Nasdaq 100 index. Analysts attribute this shift to declining Treasury yields, weaker labor market data, and political factors favoring small caps.
July 23, 2024 | 5:03 pm
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The iShares Russell 2000 ETF (NYSE:IWM) has shown significant outperformance relative to the Nasdaq 100 index, driven by expectations of a Federal Reserve rate cut, declining Treasury yields, and political factors favoring small caps.
The ETF's outperformance is attributed to multiple factors including expectations of a Fed rate cut, declining Treasury yields, and political factors. These elements are likely to continue driving investor interest in small-cap stocks.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100