U.S. small-cap stocks face delicate balance between Trump boost and inflation risks

  • 📰 globeandmail
  • ⏱ Reading Time:
  • 29 sec. here
  • 49 min. at publisher
  • 📊 Quality Score:
  • News: 179%
  • Publisher: 92%

Canadian News ニュース

Canada News,Breaking News Video,Canadian Breaking News

Some investors are wary of chasing the post-election rally

U.S. small-cap stocks have surged to near record highs following Donald Trump’s presidential election win, but some investors are wary of chasing the rally as they fear his policies could drive a resurgence in inflation, hurting the rate-sensitive sector.

Investors have already dialed back expectations for rate cuts in 2025, and that has pushed Treasury yields to multi-month highs. Small-cap companies tend to carry more debt on their balance sheets, which means an increase in interest rates could drive up borrowing costs for them and make servicing their debt more difficult, analysts say.

Despite the index’s underperformance this year, valuations are high. The Russell 2000 is trading at around 28.3 times forward earnings, according to data compiled by LSEG, compared with S&P 500′s 22.7.

このニュースをすぐに読めるように要約しました。ニュースに興味がある場合は、ここで全文を読むことができます。 続きを読む:

 /  🏆 5. in JP
 

コメントありがとうございます。コメントは審査後に公開されます。

日本 最新ニュース, 日本 見出し