Russell 2000 soared nearly 6% yesterday! With the "Trump trade" and rate cut cycle, are small cap stocks expected to continue rising?
Vincent Juvyns, Global Market Strategist at JPMorgan Asset Management, stated that the tax reduction measures in Trump's plan may benefit a wide range of industries and companies more focused on the U.S. domestic market; while the fiscal measures in Trump's plan may boost the performance of small and medium-sized companies that have underperformed in recent years.
3x long small cap ETF rose more than 15% in the night session.
November 6th, Gelonghui | The US stock market tripled its long position in small cap ETF-Direxion (TNA.US), with night trading surging, rising more than 15% at one point.
Trump's trade is once again sweeping the market, what is different from 2016 this time?
The market expects that Trump is very likely to win the presidential election next week, just like he did eight years ago.
Direxion Daily Small Cap Bull 3X ETF Options Spot-On: On October 16th, 65,268 Contracts Were Traded, With 360.09K Open Interest
On October 16th ET, $Direxion Daily Small Cap Bull 3X ETF(TNA.US)$ had active options trading, with a total trading volume of 65,268 options for the day, of which put options accounted for 31.29% of
Direxion Daily Small Cap Bull 3X Shares Declares Quarterly Distribution of $0.1529
The smaller the plate, the more fierce the rise? Rate cuts plus a soft landing, the Russell 2000 has risen for six consecutive days and may become the 'big winner'!
After the Federal Reserve announced a 50 basis point rate cut, the three major US stock indexes all straight up but ended with losses; the small cap representative e-mini Russell 2000 index also straight up, with greater elasticity, and ultimately closed flat; 'aggressive rate cuts' meets 'strong economy/soft landing', small caps are considered to benefit more from loose mmf policies.