E-mini Russell 2000 futures reverse lower as Fed hikes rates.
Bob Iaccino of Path Trading Partners breaks down the price action in Sep E-mini Russell 2000 futures following the Federal Reserve's decision to raise rates by 25 basis points. Iaccino highlights the index's early strength, peaking at 2,913.80 before reversing lower, and explains why small caps are particularly sensitive to higher borrowing costs due to their floating-rate debt. He also explores the Fed's economic outlook, noting that resilient domestic spending, strong productivity, and robust business investment continue to provide underlying support for small-cap earnings despite the headwind of higher interest rates.
Bob Iaccino of Path Trading Partners breaks down the price action in Sep E-mini Russell 2000 futures following the Federal Reserve's decision to raise rates by 25 basis points. 80 before reversing lower, and explains why small caps are particularly sensitive to higher borrowing costs due to their floating-rate debt. He also explores the Fed's economic outlook, noting that resilient domestic spending, strong productivity, and robust business investment continue to provide underlying support for small-cap earnings despite the headwind of higher interest rates.