📊 Risk-On Revival Faces Tests

Good Morning Investors,

Powell’s remarks and shifting Fed-rate expectations reignited sentiment, putting investors firmly back in risk-on mode, though analysts caution that a “may cut” outlook still points to potential volatility ahead and that recent tech rallies may be losing steam.

At the same time, changing labor dynamics and hiring freezes pose risks to margins for smaller firms, while signs of global disinflation—such as Singapore’s inflation slowdown—are helping temper near-term inflation concerns.

The key near-term catalysts for small-cap positioning will be PCE data and Jackson Hole commentary, which could quickly shift sentiment.

Matthias Schneider
Editor at Analytica Investor