📊 Fed Disputes Weigh on Risk

Good Morning Investors,

Sector trends highlighted the divergence. Miners and energy-related small-caps outperformed on commodity gains, while medical-technology and other import-sensitive names came under pressure amid fresh probes and tariff headlines. At the same time, rotation away from large-cap AI leaders was evident in flows, where shorter-term hedges and tactical protection were increasingly visible.

While resource-oriented small-caps continue to attract interest, macro uncertainty and political overhangs are keeping sentiment fragile. Volatility and dispersion remain central themes as investors weigh sector opportunities against a backdrop of shifting Fed expectations and policy risk.

Matthias Schneider
Editor at Analytica Investor