📊 Fiscal Strain Pressures Tech

Good Morning Investors,

Idiosyncratic catalysts also shaped trading. Cannabis names rallied after a presidential endorsement on social media, highlighting how policy and politics can quickly move niche sectors. At the same time, a surge in convertible-bond issuance suggested that smaller firms are taking advantage of cheaper capital to extend runways or finance transactions.

Near-term positioning will hinge on the intersection of political developments, labor-market data, and financing conditions. These factors are likely to determine whether the current momentum in smaller names can be sustained.

Matthias Schneider
Editor at Analytica Investor