Markets wrap: Stocks surge on rate cut expectations, small caps lead

Stocks surged to record highs amid expectations of Federal Reserve rate cuts, prompting a shift to riskier assets. Small caps outperformed tech, with the Russell 2000 beating the Nasdaq 100 by nearly 12%. Amidst broader market optimism, caution lingers over potential overheating in small-cap stocks, despite positive economic indicators.

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By Rita Nazareth*

Stocks hit all-time highs as bets the Federal Reserve will soon start cutting rates fueled a rush into riskier corners of the market.

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