📊 Rally Running Thin

Good Morning Investors,

Fresh U.S. steel/aluminum tariff expansions raise input-cost risk for industrial and consumer small caps, potentially pressuring margins if pricing power fades.

Commodities firmed (S&P GSCI +0.5%) while energy equities lagged (-0.2%); ongoing consolidation remains a tailwind for select small E&Ps as oil and gas M&A surged last year.

With Fed minutes in focus and speculative pockets (SPACs, hot IPOs) reappearing, breadth may wobble; some see small caps’ recent run losing “runway” near term.

Matthias Schneider
Editor at Analytica Investor