US small- and mid-cap (SMID) companies are seeing a surge in popularity amid predictions of a US soft landing, but investors caution against premature excitement.
On Wednesday (18 September), the Federal Reserve slashed interest rates by 50 basis points, bringing the overnight lending rate down to a range of 4.75% to 5%. Markets rallied immediately after the 'jumbo' rate cut, with the S&P 500 climbing 0.9% while the Russell 2000, which tracks US small-caps, jumped as high as 2.3%, according to data from MarketWatch. Lower rates are expected to benefit small-cap stocks, which are heavily reliant on debt capital markets for financing. The cut was seen as a sign of the central bank's confidence in a soft landing for the US economy and Garry Whi...
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