A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here. You can listen to an audio version of the newsletter by clicking the same link. Investors seem to believe that the Federal Reserve is done raising rates after it paused for the second consecutive time at its meeting on Wednesday. But declines in small-cap stocks suggest that worries about the US economy’s health still linger on Wall Street.
Fed Chair Jerome Powell also said that Fed officials have yet to even consider cutting rates. Still, Mahajan says that small-cap stocks could be set up for a rally, especially if the economy sees renewed growth next year.
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