📊 Fed Watch Keeps Markets on Edge

Good Evening Investors,

Market breadth was supported by broad ETF inflows and strong bond demand. Macro releases continue to keep the market priced for Fed easing, even against the backdrop of stickier inflation data, making next week’s FOMC decision a key event for sentiment.

Options positioning suggests small-caps could be more sensitive to short-term volatility compared to larger benchmarks.

Biotech momentum stood out, though analysts noted that regulatory and marketing risks could amplify moves in healthcare-focused small-caps. Resource-related small-caps also benefited from commodity-linked gains, reinforcing the broader rally across cyclical segments.

Matthias Schneider
Editor at Analytica Investor