Small caps rally as Magnificent 7 stocks roll over in market rotation

1. Small-cap stocks gained, driven by expectations of Fed interest rate cuts. 2. The Russell 2000 index is on track for its best week since May. 3. Investors predict near 100% chance of rate cuts at the next Fed meeting. 4. Major tech stocks like those in the Magnificent 7 Index are experiencing declines. 5. Lower interest rates could boost consumer spending and capital costs overall.