As for the world-leading American stock market, there has been a recent trend of small-cap stocks outperforming large-cap stocks.
If the weakness of smaller stocks relative to larger ones were now reversed and translated into stronger behavior in the face of an increasingly looming rate cut, it would not be surprising from a historical perspective.
However, what will matter to the market as a whole will be whether the behavior of smaller stocks is simply the result of much weaker behavior of larger stocks after a certain point, or whether the smaller stocks will simply rise faster.
In any case, it's worth watching to see if this translates into profit realization in large-cap stocks, which could have an impact on major US stock indexes.
