Latest / The Macro Memo with Fexingo: Daily Conversations on Inflation, GDP, and Federal Reserve Policy
Why the Russell 2000 Is Getting Left Behind
Episode 99 of The Macro Memo examines why the Russell 2000 is trailing the S&P 500 despite a strong economy and a recent run-up in large-cap stocks. With the index flat over the past five days and the S&P 500 up 1.3 percent, Lucas and Luna dig into the structural factors: higher interest rates hurting small-cap margins, a labor market that favors large employers, and a shift in investor preference toward mega-cap safety in an uncertain macro environment. They also touch on the latest Fed rate at 3.63 percent and what the 10-year breakeven rate of 2.24 percent says about inflation…
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