Russell 2000 has become a small standard

Small kinetic stocks, which were believed to have benefited from the main president Donald TrumpPolicies, the bear market entered Thursday after a huge market leak Display customs tariff.

the Russell 2000 indicators About 6 % fell on Thursday, which led to his losses from November 25 near about 22 %. In Wall Street, withdrawal is 10 % withdrawal correction, but a 20 % decrease is the bear market. the S & P 500 and Nasdak Both are in the correction area, while Dow Jon’s industrial average It is a little less than that sign.

“They are beaten because the economy is giving up. This will harm profits,” CNBC told CNBC. “On the other hand, they still pay high levels of debt interest payments because they have more floating debts.”

“They are under pressure on both sides,” he said.

This is a sharp reflection of the gains seen on the trading days that followed the November elections, with small hats Beneficiaries From canceling restrictions, low tax rates and even definitions because the group has fewer multinationals from large stocks.

Russell 2000 closed the elections week with 8.6 %, or nearly four degrees Celsius higher than weekly profit 4.7 % than the S&P 500. Besides, it became one of the most important Trump deals. In fact, Tom Li – the administrative partner and head of research at Fundstrat – said at the time that small hats can surpass me More than 100 % during the next two years.

But Russell 2000 decreased on Thursday with names such as Victoria’s secret and Urban clothesAny source of many products from other countries and you can see much higher costs and reduce margins of definitions.

The group is especially sensitive to economic transformations in view of its small size, and thus less financial flexibility, such as large stocks. Jpmorgan expects that if Trump remains the new mutual definitions, the American economy will It is likely to fall into the recession.

Russell 2000 was approaching the Bear Market area in March amid a month -old sale over a month driven by the confidence surrounding Trump’s Definition plans And anxious anxiety on slow Economy Street.

“The small hats, in the first half of the economic recession, usually decrease by 13 %, so they are already worse than where we were for the medium recession.” “For the medium bear market, small covers decreased by 26 %, so we are approaching this number.”

Traders are currently pricing by 62.5 % of four discounts at quarter points at the end of the year by the end of the year 2025, with more than 95 % of the next reduction at the Central Bank meeting in June, according to CME Fedwatch tool.

“If the economy is weak enough, then do we get support from the Federal Reserve? We say yes. This is usually beneficial to small hats,” the stock expert said.

Desanctis added that the path from here may seem like a quarter of two quarter “difficult”, although there is no stagnation, before the federal reserve comes to the rescue in the summer. From there, it is expected that some concerns surrounding the definitions – that can provoke the costs of the inputs of companies – will be resolved, which causes the market to focus on removing restrictions again.

Lenner, who is underweight in small hats, is a similar building. He pointed out that in addition to canceling regulatory restrictions, it must provide a more focus on tax extensions and the return of animal lives that lead to capture in integration and acquisitions, an opportunity for small ponds later in the year, or whenever investors feel that the worst economic view of them.

What’s more, because things “do not move in a straight line,” they will not be surprising “for small hats as well as large hats to see” wearing “.

Lerner does not believe that large hats will face a similar fate for entering the bear market as small covers. The S&P 500 is still far from the bear market, as it exceeds 11 % at the height of February 19 in the correction area.

The participant said: “With a 20 % small hats, he tells you that they have already decreased-the bear market has not started here. It was continuing for several months,” the participant said. “On the other hand, the large covers have also decreased, but it has decreased about half of them for small hats. Our basic state of large hats is that you may see a negative aspect, but we do not call for the bear market.”

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