📊 Fed Outlook Keeps Risk Selective

Good Morning Investors,

Trading was uneven as leadership stayed concentrated in large growth names while smaller stocks struggled to keep pace. Canadian venture shares were softer on the day, reinforcing the theme that risk appetite remains selective rather than broad based.

With markets expecting the Federal Reserve to signal an end to the rate cutting cycle, interest rate sensitive segments are vulnerable to repricing. Earnings season is increasing volatility and widening dispersion, creating sharp winners and losers within the small cap space. Defensiveness dominates, with selective opportunity in energy and materials while broader participation waits on clearer signals from the Fed and corporate results.

Matthias Schneider
Editor at Analytica Investor