The "Interest Rate Apartheid" is Over: Why the Fed Cut Just Unleashed the Russell 2000
For the past two years, the stock market has been a tale of two cities. Large-cap tech stocks ( $SPDR S&P 500 ETF Trust(SPY)$ , $Invesco QQQ(QQQ)$ ) soared, immune to high interest rates because they are cash-rich and hold almost no debt. Meanwhile, small businesses and the Russell 2000 ( $iShares Russell 2000 ETF(IWM)$ ) have been suffocated. The Fed's recent rate cut changes the economic physics for small companies overnight. While the media focuses on what a rate cut means for mortgage rates, the real explosion is happening in the small-cap sector. The reaso