EXCLUSIVE: Fed In 'Pro-Growth Mode' Will Drive Small Cap Performance, Lazard Expert Says
Portfolio Pulse from Piero Cingari
The Federal Reserve's pro-growth stance, characterized by rate cuts, is expected to boost U.S. small-cap stocks, according to Sean Gallagher of Lazard. The iShares Russell 2000 ETF (IWM) saw a volatile reaction to a recent rate cut but is projected to have significant upside. Gallagher anticipates further rate cuts, which could benefit small caps and the biotech sector.
September 19, 2024 | 4:45 pm
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The iShares Russell 2000 ETF (IWM) is expected to benefit from the Federal Reserve's rate cuts, which are seen as a bullish catalyst for small-cap stocks. The ETF had a volatile reaction to a recent rate cut but is projected to have significant upside.
The Federal Reserve's decision to cut rates is expected to support economic growth, which is particularly beneficial for small-cap stocks. The iShares Russell 2000 ETF, which tracks small-cap stocks, is likely to see positive performance as a result. Sean Gallagher's projection of a 30% upside further supports this positive outlook.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100