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Small-Cap Stocks Are on a Roll. What Could Push Them Higher.

1. Small-caps have outperformed larger stocks by 5% since August 1. 2. Federal Reserve rate cuts could further boost small-cap earnings. 3. Analyst estimates for small-caps still lag compared to large-cap firms. 4. Economic growth forecasts could favor small-caps if Fed acts decisively. 5. Inflation risks may hinder immediate rate cuts from the Fed.

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FAQ

Why Bullish?

The potential Fed rate cuts would favor small-cap growth, indirectly supporting SPY's performance.

How important is it?

The article discusses factors impacting small-caps, which relate to SPY's overall market performance.

Why Short Term?

If the Fed signals impending rate cuts, SPY could gain in the near term.

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