EXCLUSIVE: Market Strategist On Small Cap Rally, Election Year, Fed Cuts And What's Next – 'I Think The Setup Is There'
Portfolio Pulse from Chris Katje
Market strategist Jay Woods discusses the potential impact of a Federal Reserve rate cut, the outlook for small-cap stocks, and election year trends. He predicts a rate cut in September, which may already be priced into stocks, and highlights the potential for a small-cap rally. The iShares Russell 2000 ETF (IWM) and SPDR S&P 500 ETF Trust (SPY) are mentioned as key indicators.
August 23, 2024 | 5:23 pm
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NEUTRAL IMPACT
The SPDR S&P 500 ETF Trust (SPY) is mentioned in the context of market movements and potential impacts of a Fed rate cut. The ETF is up 1% on Friday.
SPY is mentioned as a key market indicator. While the rate cut may already be priced in, SPY's performance reflects broader market sentiment.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60
POSITIVE IMPACT
The iShares Russell 2000 ETF (IWM) is highlighted as a potential beneficiary of a small-cap rally following a Fed rate cut. Small caps have historically performed well post-rate cuts.
Jay Woods emphasizes the potential for small-cap stocks to rally following a Fed rate cut, which historically leads to gains in small caps. IWM, tracking the Russell 2000, is directly impacted by this trend.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80