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Small Caps Soar on Fed Day: A New Record!
11 Dec
Summary
- Small-cap stocks, including the Russell 2000, hit record intraday highs after Fed commentary.
- Cisco's stock surpassed its dot-com boom peak, a significant milestone not seen since 2000.
- Bitcoin showed a notable lack of response to the Fed's rate cut, diverging from stock market trends.
Following the Federal Reserve's recent rate cut, small-cap stocks demonstrated a strong rally, with the Russell 2000 index achieving a fresh intraday record. This positive sentiment was particularly fueled by comments made during Fed Chair Powell's press conference, which appeared to excite the small-cap and micro-cap sectors, with the CRSP US microcap index also reaching new highs.
In a striking historical parallel, Cisco's stock closed higher than its peak from the dot-com bubble era in March 2000. This significant recovery for the tech giant, which had been a prominent feature of the early 2000s market, serves as a notable point of interest, especially as discussions around the valuation of large tech companies continue.
