📊 Visa fees, Fed path uncertain

Good Morning Investors,

Policy headwinds re-emerged, with the proposed six-figure H-1B visa fee raising concerns over hiring costs and talent flows for smaller tech firms. M&A activity also remained uneven, with large-scale transactions commanding premiums while many small-cap deals stalled in a thinner lower-end market.

The macro backdrop added another layer of complexity. The ongoing Federal Reserve debate over the timing and pace of rate cuts left investors balancing support for small-cap growth against risks tied to valuations and macro uncertainty. While rate cuts could buoy sentiment and liquidity, analysts warn that elevated multiples and shifting policy dynamics will likely keep dispersion high.

Matthias Schneider
Editor at Analytica Investor