Small-Cap Stocks Surge After Large Fed Rate Cut
Market Reaction to Fed Rate Cut
Small-cap stocks in the U.S. were climbing sharply Wednesday after the Federal Reserve delivered a large interest-rate cut to kick off its easing cycle.
Performance Comparison
The S&P Small Cap 600 index was up 1.3%, according to FactSet data, at last check. That compared with a 0.4% rise for the S&P 500, a gauge of U.S. large cap stocks.
Fed's Decision Explained
The Fed said Wednesday that it decided to cut its benchmark rate by a half percentage point, citing progress on inflation as it considers the balance of risks for its dual mandate of maximum employment and a 2% rate of inflation over the longer run.
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