On Wednesday (18 September), the Federal Reserve slashed interest rates by 50 basis points, bringing the overnight lending rate down to a range of 4.75% to 5%.
Markets rallied immediately after the ‘jumbo’ rate cut, with the S&P 500 climbing 0.9% while the Russell 2000, which tracks US small-caps, jumped as high as 2.3%, according to data from MarketWatch.
Lower rates are expected to benefit small-cap stocks, which are heavily reliant on debt capital markets for financing.
The cut was seen as a sign of the central bank’s confidence in a soft landing for the US economy and Garry Whi…
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