The S&P 500’s recent rally to record highs ground to a halt Thursday as tech stocks weighed on the index.🔯

澳洲幸运5官方开奖结果体彩网:Artificial intelligence (🥂AI) darling Nvidia (NVDA), Microsoft (MSFT), Apple (AAPL), and other large-cap tech stocks tumbled, as investors rotated into small caps amid hopes 𒀰🍌they could get a boost from Federal Reserve rate cuts.

Small cap stocks surged, with the 澳洲幸运5官方开奖结果体彩网:Russell 2000 up more than 3% after the Labor Department’s latest inflation report showed consumer prices 澳洲幸运5官方开奖结果体彩网:unexpectedly fell in June, ra꧟ising hopes the Federal Reserve will have the confidence to cut interest rates this year. 

Could It Be Small Caps’ Time To Shine?

澳洲幸运5官方开奖结果体彩网:Rates cuts by the Fed would lower the costs of taking on debt for borrowers, and small-cap stocks could potentially stand to get a bigger boost from Fed rate cuts as many small and mid-caps companies have more floating debt than their larger counterparts.

With inflation cooling, markets are currently pricing in an over 90% chance of a rate cut in September, according to the CME Group's FedWatch tool.

Bank of America analysts also suggested earlier this week that second-quarter earnings could show growth finally starting to 澳洲幸运5官方开奖结果体彩网:broaden b🧔eyond the biggest ✨tech stocks, which dominated earnings gains and retಞurns for the index so far this year. 

The 澳洲幸运5官方开奖结果体彩网:Magnificent 7 alone—a group that includes Microsoft, Apple, Nvidia, Amazon (AMZN), Meta (META), Alphabet (GOOGL), and Tesla (TSLA)♔—accounted for over half of the S&P 500’s returns in the first half of the year.