Commentary
The Russell 2000 surged early this month, gaining over 11% in a week or so, reflecting a “seismic shift” in the breadth and power of the overall stock market. Some market pundits said this seismic shift came in anticipation of multiple Fed key interest rate cuts, which will help boost domestic stocks, versus the big multi-national stocks that dominate the S&P 500. One piece of evidence for this theory is that one of the hottest sectors, homebuilders, was especially strong, especially after fixed-rate mortgages declined to a median 6.87% rate, the lowest level since March, another indication that the impending Fed interest rate cuts could soon provide a new “turbo boost” to the U.S. stock market and economy later this summer.
