Investors took comfort from comments by New York Fed President John Williams, who said there were “encouraging reasons” to expect inflation has peaked and should gradually moderate in the quarters ahead. The rate-sensitive small caps reacted accordingly, closing up +0.4%, back within striking distance of its all-time high.
- We can see the Russell 2000 continuing to outperform in 2026, as interest rate fears ease.
MM remains bullish towards the Russell 2000 around the 3000 level
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