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RUT
Market Watch
218 days

Small-cap stocks face heightened risk with rate cuts in question, warns BofA - MarketWatch

1. Russell 2000 index is in correction territory, down 1.6% YTD. 2. Recent bond market interest rate spikes raise small-cap stock risks. 3. A correction is defined as a 10% drop from a recent peak.

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FAQ

Why Bearish?

The correction in RUT indicates increased selling pressure, similar to past yield spikes.

How important is it?

Interest rates directly influence small-cap valuations, likely affecting RUT significantly.

Why Short Term?

Market reactions to interest rate changes often show immediate effects on small-cap stocks.

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