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What the Feds Rate Pause Means for Small-Cap Stocks
Season 2
Episode 88
Published 1 week, 2 days ago
Description
The Fed has held rates steady since January, and the Russell 2000 is barely budging. Lucas and Luna dig into why small-cap stocks are stuck despite a resilient economy and what the yield curve's persistent inversion tells us about credit conditions for smaller firms. They look at the recent ADP miss—98,000 private payrolls added in June, below expectations—and what it signals about the labor market's uneven health. Plus, they explore the connection between the Fed's rate pause and the growing divergence between large-cap and small-cap performance, with the S&P 500 up 1.7% in the last five days while the Russell is flat. A tight, data-driven conversation about monetary policy's uneven transmission.