Small-cap stocks jumped on Wednesday, bucking the slide in some of the market’s largest companies, as investors bet that the Federal Reserve will cut interest rates starting in September — lowering the cost of capital and possibly boosting consumer spending.
The small cap-focused Russell 2000
gained more than 1% in midday trading. By comparison, the broad S&P 500
was little changed, held back by major technology stocks.
The CNBC Magnificent 7 Index, which tracks seven megacap technology companies, lost 0.3% after hitting a 52-week high earlier in the day.
