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SPDR S&P 500

Technology

Financial Services

Healthcare

Consumer Cyclical

Industrials

Consumer Defensive

Energy

Communication Services

Real Estate

Utilities

Basic Materials

Other

The Trust seeks to achieve its investment objective by holding a portfolio of the common stocks that are included in the index (the Portfolio), with the weight of each stock in the Portfolio substantially corresponding to the weight of such stock in the index.

Apple Inc

Microsoft Corp

Nvidia Corp.

Amazon.Com Inc

Meta Platforms, Inc.

Alphabet Inc

Alphabet Holding Company Inc.

Berkshire Hathaway Inc., Cl. B

Broadcom Inc

Tesla, Inc.

SPDR S&P 500 ETF

wall-street-ai17

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Macro Economic Events

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Broad U.S. Equity ETFs

Commodities

Forex

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Econ #s

Economics

Federal Reserve

Markets

Tech

ETFs

PANW

STLA

Fed&#39;s Powell Hints At Policy Shifts, Dollar Plunges, Gold Rallies As Investors Flock To Rate-Cut Winners: This Week In The Markets

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AAPL

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NVDA

Nvidia stock will be a key market leading indicator for the Magnificent 7 and several ETFs, a market strategist tells Benzinga.

Nvidia Is Next Week&#39;s Top Stock, Market Strategist Says: Why Best Long-Term Idea Is &#39;Just Buy Nvidia And Put It Away&#39;

Earnings

News

EMHC

PowerShares DB US Dollar Index Bearish Fund

USDU

PowerShares DB US Dollar Index Bullish Fund

The U.S. greenback has seen a stellar run so far this year, with Invesco DB US Dollar Index Bullish Fund (ARCA:UUP) logging a 2.8% return. However, things may go downhill in the coming days, with the Fed expected to cut rates in September.

U.S. Dollar to Drop Ahead? ETFs to Gain/Lose

SPDR S&P 400 US MID CAP ETF

Simplify Exchange Traded Funds Simplify US Equity PLUS Convexity ETF

SPDR Series Trust SPDR Portfolio S&P 500 High Dividend ETF

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SPYR Technologies

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Bank Of Montreal MAX S&P 500 4X Leveraged ETNs due October 30, 2043

SPDR Series Trust SPDR Portfolio S&P 500 Value ETF

SPDR S&P 500 Fossil Fuel Reserves Free ETF

U.S. Energy Department Says Buys U.S. Nearly 2.5M Barrels Of Oil For Strategic Petroleum Reserve

In a pivotal address at the Jackson Hole Symposium in Wyoming, Federal Reserve Chair Jerome Powell signaled a forthcoming shift in interest rates Friday, stating &#8220;the time has come <a href="https://www.benzinga.com/etfs/sector-etfs/24/08/40529209/jerome-powell-time-has-come-for-interest-rate-cuts-cooling-in-labor-market-unmistakable">for policy to adjust.&#8221;</a>
His remarks suggest the Fed is on the cusp of easing interest rates, yet Powell emphasized the importance of data-driven decisions, carefully avoiding any commitment to specific timing or <a href="https://www.benzinga.com/government/24/08/40532173/powell-removes-any-uncertainty-around-september-rate-cuts-in-jackson-hole-speech-economists">the magnitude of those cuts.</a>
As the Fed becomes more confident in inflation gradually returning to its 2% target, Powell emphasized the need to closely monitor the labor market, which he said is showing "unmistakable" signs of cooling.
The anticipation of impending interest rate cuts extended a decline in the dollar, which tumbled to its lowest level in over a year. This shift in policy direction invigorated interest rate-sensitive markets, with small-cap stocks, real estate and regional banks surging as clear <a href="https://www.benzinga.com/markets/equities/24/08/40530908/powells-rate-cut-signal-triggers-small-cap-rally-gold-makes-record-highs-dollar-tumbles-7-etfs-o">beneficiaries following Powell&#8217;s remarks.</a>
Simultaneously, gold — which historically moves inversely to interest rates and the dollar — soared to a record high, surpassing $2,500 per ounce.
All major U.S. equity indices ended the week in positive territory, with the S&amp;P 500, represented by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), rising 1.3%. Small-cap stocks significantly outperformed their large-cap counterparts, as the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) surged 3.4% for the week.
<h3 class="wp-block-heading">Election-Proof Stocks</h3>
Market strategist Jay Woods said certain stocks, especially in the defense and cybersecurity sectors, could perform well regardless of whether Donald Trump or Kamala Harris wins the presidency. Notable mentions include Boeing Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>), Lockheed Martin Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>) and Palo Alto Networks Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PANW#NASDAQ">PANW</a>), alongside Woods' recommended exchange traded <a href="https://www.benzinga.com/etfs/sector-etfs/24/08/40515453/exclusive-trump-or-harris-12-stocks-2-etfs-could-win-no-matter-whos-president-says-market-strate">funds for diversified exposure.</a>
<h3 class="wp-block-heading">Job Growth Revised</h3>
The U.S. economy added 818,000 fewer jobs than initially reported from April 2023 to March 2024. This significant revision increases expectations for interest rate cuts, as it suggests the labor market is <a href="https://www.benzinga.com/economics/macro-economic-events/24/08/40487711/us-economy-adds-818-000-fewer-jobs-than-initially-reported-urgency-for-interest-r">weaker than previously thought.</a>
<h3 class="wp-block-heading">EV Ambitions Scaled</h3>
Ford Motor Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>), General Motors Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>) and Stellantis N.V. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STLA#NYSE">STLA</a>) are reducing their electric vehicle investments due to weakening demand. Ford canceled a planned electric SUV this week, while GM and Stellantis delayed new EV projects, signaling a strategic shift <a href="https://www.benzinga.com/markets/24/08/40518874/ford-gm-stellantis-cooling-to-once-hot-ev-sector-as-demand-wanes">in uncertain market conditions.</a>
<h3 class="wp-block-heading">Gold Bars Shine</h3>
With gold prices cracking $2,500 per ounce, a standard 400-troy-ounce gold bar is now valued at $1 million. The surge is driven by expectations of Federal Reserve interest rate cuts and a weakening U.S. dollar, boosting <a href="https://www.benzinga.com/markets/equities/24/08/40469009/a-bar-of-pure-gold-is-now-worth-1-million-what-can-it-buy-you">gold&#8217;s appeal to investors.</a>
Photo created using artificial intelligence via MidJourney.

Fed's Powell Hints At Policy Shifts, Dollar Plunges, Gold Rallies As Investors Flock To Rate-Cut Winners: This Week In The Markets

Macro Notification

Politics

General

RFK Jr. Announces He Will Now Throw His Support To Trump

<a href="https://www.youtube.com/watch?v=_HvhEZebrIA" title="https://www.youtube.com/watch?v=_HvhEZebrIA">https://www.youtube.com/watch?v=_HvhEZebrIA</a>

RFK Jr. Says No Longer Believes In A Realistic Path To Electoral Victory, Announces Suspension Of Campaign; Removing My Name From The Ballot In 10 Battleground States

An earnings report from NVIDIA Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) will be closely watched by investors and could be a market-leading indicator, a market strategist tells Benzinga ahead of the results coming Aug. 28 <a href="https://www.benzinga.com/earnings">after market close.</a>
Nvidia Earnings on Watch: Analysts expect Nvidia to report second-quarter revenue of $28.46 billion, up from $13.51 billion in last year's second quarter, according to data <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent082324&amp;t=be2bearmibe3na1">from Benzinga Pro.</a>
Estimates call for Nvidia to report second-quarter earnings pre share of 64 cents, compared to 27 cents per share in last year's second quarter.
Nvidia has beaten revenue estimates in seven straight quarters and nine of the last 10 quarters. The company has also beaten earnings per share estimates in six straight quarters and eight of the last 10 quarters.
Freedom Capital Markets Chief Global Strategist Jay Woods emphasized the importance of Nvidia's earnings report on the market during an interview on Benzinga's <a href="https://www.youtube.com/watch?v=vGXosi2hWTQ">"PreMarket Prep."</a>
Woods said there's been a pause in Magnificent 7 stocks, including Nvidia.
"We're seeing consolidation in those Mag 7 names now," Woods said.
The market strategist said Nvidia was the tell to the market changing last August.
On Aug. 23, 2023, the stock gapped up at the open, filled the gap, and closed slightly higher after reporting earnings. In the months that followed, the stock declined from $480 (now split-adjusted to $48) to $400 (now split-adjusted to $40) before breaking out in January 2024.
Woods said Nvidia is the one stock to watch next week and the $140 level could be a key metric ahead of earnings, a level the market strategist does not see the stock hitting before Wednesday.
Read Also: <a href="https://www.benzinga.com/etfs/sector-etfs/24/08/40515453/exclusive-trump-or-harris-12-stocks-2-etfs-could-win-no-matter-whos-president-says-market-strate">EXCLUSIVE: Trump Or Harris? 12 Stocks, 2 ETFs Could Win No Matter Who&#8217;s President, Says Market Strategist</a>
Why It's Important: Woods calls Nvidia a market leader and as a top stock, one that could move the markets.
The market strategist said the stock could take a lot of boats with it, depending on how investors react to the earnings.
As one of the most valuable companies in the world, Nvidia has a large weighting in many indexes and ETFs, Woods warned.
The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) lists Nvidia as the third-largest holding at 6.5%, trailing only Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) at 6.9% and Microsoft Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) at 6.6%.
Woods warned that investors should be aware<a href="https://www.benzinga.com/news/24/06/39368302/state-street-technology-etf-to-put-nvidia-before-apple-in-revamp"> that a new rebalancing </a>of the SPDR Select Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) has made Nvidia more important than Apple. The current weightings for the fund have Microsoft first at 21.2%, Nvidia second at 20.9% and Apple third at 4.9%.
"You better know that Nvidia [is] now more important than Apple is."
Although Woods is cautious about Nvidia&#8217;s momentum ahead of its second-quarter results, he still considers the stock one of the best long-term picks.
"My best idea is just buy Nvidia and put it away and don't look at it."
Woods recalled his father buying shares of Nvidia after hearing him talk about it on TV in 2019. His father put the stock away and forgot about it, before asking Woods what a 10-for-1 stock split meant for his stake. Woods said the investment went from $3,000 to over $100,000.
The example could perfectly illustrate Benzinga's "<a href="https://www.benzinga.com/topic/if-you-invested-1000-catalyst">if you invested $1,000</a>" story series on how a small investment could pay off over time based on key catalysts and events.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/exclusives/24/07/39886192/exclusive-tesla-an-elon-musk-and-a-technology-story-first-ev-story-last-market-strategist-explains-w">EXCLUSIVE: Tesla &#8216;An Elon Musk And A Technology Story First, EV Story Last&#8217; — Market Strategist Explains Why To Buy The Stock</a></li>
</ul>
Watch the interview with Woods on "PreMarket Prep" below.
<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"> 
<div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="Pause In Action Before Jackson &#x7C; PreMarket Prep" width="500" height="281" src="https://www.youtube.com/embed/vGXosi2hWTQ?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div>
</figure>
Photo: Created with images from Benzinga and Shutterstock.

Nvidia Is Next Week's Top Stock, Market Strategist Says: Why Best Long-Term Idea Is 'Just Buy Nvidia And Put It Away'

- Reuters&nbsp;
- Reuters&nbsp;

Biden Announces New Military Aid Package For Ukraine; Package For Ukraine Includes Air Defense Missiles, Counter-Drone Equipment, Anti-Armor Missiles, And Ammunition

Fed's Goolsbee Says Path Of Rate Cuts Is Key, Not Size; Neutral Rates Are "Far From Where We Are"; Says Everything Is Always On The Table For The Fed; Doesn't Expect Near Zero Rates Given Current Economic Outlook

RFK Jr. Plans To Endorse Trump, According To Court Filing

Fed's Goolsbee Says Fed Must Focus On Job Mandate, Forecasts Indicate Path Of Rate Cuts; Speed And Size Of Cuts To Depend On Data; Economy Shows Both Warning Signs And Signs Of Strength

The U.S. greenback has seen a stellar run so far this year, with&nbsp;Invesco DB US Dollar Index Bullish Fund (ARCA:UUP) logging a 2.8% return. However, things may go downhill in the coming days, with the Fed expected to cut rates in September.
<h2>Market Forecast: Dollar Weakening Against Yen</h2>
Geoffrey Yu, senior EMEA market strategist at BNY, shared his outlook on the U.S. dollar&#39;s performance against major currencies, telling CNBC that the dollar may continue to weaken against the Japanese yen through the end of the year. This is especially true given that the Bank of Japan is on a policy tightening mode, which could strengthen the yen against the greenback.
On Wednesday, the dollar was trading 0.6% higher at 146.09 yen around 11:50 AM London time. This followed a dip below the significant 145-yen level for the first time since Jan. 6, indicating a recent surge in the yen and a continued unwinding of the yen-funded carry trade, the CNBC article noted.
<h2>Carry Trade Explained</h2>
Carry trades involve borrowing in a currency with low interest rates and investing in higher-yielding assets. This strategy has been popular due to expectations that the Japanese yen will remain weak and Japanese interest rates will remain low. However, recent interest rate hikes from the Bank of Japan have strengthened the yen, contributing to a global market sell-off.
<h2>Outlook for Yen Carry Trade Unwinding</h2>
The yen carry trade began to unwind earlier this month as Bank of Japan rate hikes bolstered the currency. Although some stabilization has occurred, strategists, including Yu, believe the unwinding process is ongoing.
Given the above-mentioned facts, the bearish trend in the greenback is likely to continue, at least in the near term.
<h2>ETFs to Buy for Weakening Dollar</h2>
So, investors looking to play the weakening U.S. dollar could consider these exchange-traded funds (ETFs):
<h3>Inverse Dollar Fund</h3>
Needless to say, if the dollar is falling, a short position on the currency would result in negative returns. Invesco DB US Dollar Index Bearish Fund (ARCA:UDN) should thus be avoided.
<h3>Commodities: Gold</h3>
The decline in the U.S. dollar is good for raw materials and commodities as these are priced in the U.S. dollar. SPDR Gold Shares (ARCA:GLD) has gained 21.7% this year due to a sudden dollar weakness and geopolitical tensions.
Large-Cap ETFs
Since large-cap stocks have greater foreign exposure, the weakening dollar is positive for this capitalization. BofA Global Research once estimated that every 10% drop in the U.S. dollar translates into about a 3% boost to S&amp;P earnings. SPDR S&amp;P 500 ETF Trust (ARCA:SPY) should thus be closely watched.
<h2>ETFs to Sell for Weakening Dollar</h2>
<h3>U.S. Dollar</h3>
The dollar weakness can surely be played with UUP and WisdomTree Bloomberg U.S. Dollar Bullish Fund (ARCA:USDU).
<h3>Small-Cap ETFs</h3>
Since small caps are closely tied to the U.S. economy and do not get affected by a rising dollar due to their limited foreign exposure, iShares Russell 2000 ETF (ARCA:IWM) could be a weak pick now, in this context.
<h3>Dollar-Denominated Bond ETFs</h3>
Investors seeking EM exposure amid a falling dollar should not consider dollar-denominated EM bond ETFs. These funds invest in sovereign debt from a variety of emerging nations via U.S. dollar-denominated securities. Notably, the debt route is less risky than equities. Moreover, most emerging markets have low debt levels compared to the developed countries.
SPDR Bloomberg Emerging Markets USD Bond ETF (ARCA:EMHC) is one such ETF. The underlying Bloomberg Emerging USD Bond Core Index measures the performance of fixed-rate US dollar-denominated debt issued by sovereign and quasi-sovereign emerging market issuers. The fund yields 5.39% annually and is up 2.7% this year.
<a href="https://www.zacks.com/stock/news/2325978/u-s-dollar-to-drop-ahead-etfs-to-gain-lose?cid=CS-BENZ-FT-etf_news_and_commentary-2325978">To read this article on Zacks.com click here.</a>

<a href="https://www.foxnews.com/video/6360893539112" title="https://www.foxnews.com/video/6360893539112">https://www.foxnews.com/video/6360893539112</a>

Watching Shares Of Trump Media; Robert F. Kennedy Jr. To Address Nation After Earlier Reports From ABC News That RFK Jr. To Drop Out Of Presidential Race And Endorse Trump

Fed's Goolsbee Says Confident Fed Forecasts Of Rate Cuts Will Materialize; Notes Warning Signs In Job Market

Fed's Goolsbee Says Powell's Rate Comments Were Clear And Definitive; Funds Rate Was Set During Higher Inflation; Fed Policy Has Been Passively Tightening As Inflation Cools

Federal Reserve Chairman Jerome Powell has dispelled any remaining uncertainty by signaling that the central bank is preparing to shift its monetary policy, effectively paving the way for <a href="https://www.benzinga.com/etfs/sector-etfs/24/08/40529209/jerome-powell-time-has-come-for-interest-rate-cuts-cooling-in-labor-market-unmistakable">imminent interest rate cuts. </a>
His remarks triggered a rally in rate-sensitive assets and pushed the dollar towards the lowest close since July 2023.
&#8220;The time has come for policy to adjust. The direction of travel is clear,&#8221; Powell announced at the<a href="https://www.benzinga.com/topic/jackson-hole"> Jackson Hole Symposium </a>on Friday in Wyoming.
Powell expressed increased confidence in inflation returning to the 2% target and highlighted a heightened focus on the labor market, noting that conditions are cooling.
The market found significant support in Powell&#8217;s indication the Federal Reserve has &#8220;ample room&#8221; to respond to any emerging risks.
Small-cap stocks <a href="https://www.benzinga.com/markets/equities/24/08/40530908/powells-rate-cut-signal-triggers-small-cap-rally-gold-makes-record-highs-dollar-tumbles-7-etfs-o">emerged as clear winners</a> following Powell&#8217;s speech on Friday, with the Russell 2000 index surging by 3% by midday trading in New York. Traders flocked to these companies, anticipating significant relief from the prospect of lower borrowing costs.
Regional banks, as tracked by the SPDR S&amp;P Regional Banking (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>), were the brightest market spot, with the industry gauge rallying over 4.5%. All of its 141 constituents showed a positive performance. 
In contrast, large-cap indices maintained their gains from the market open, showing only little reaction to Powell&#8217;s remarks.
In the forex market, the dollar extended its decline, falling by 0.7% and heading toward its fifth negative weekly close with the sharpest decline since mid-November 2023. The decline in Treasury yields weighed on the greenback.
Commodities rallied, with gold up over 1.1% setting fresh all-time highs, and silver soaring 2.5%. Crude oil also surged, up 2.4%, while copper gained 1.7%. 
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) rose 2.25% to $61,863.
<h1 class="wp-block-heading">Friday&#8217;s Performance In Major U.S. Indices, ETFs</h1>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,214.91</td>
<td>3.0%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>19,605.24</td>
<td>0.6%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>40,948.96</td>
<td>0.6%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,602.01</td>
<td>0.6%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 1:00 p.m. ET</figcaption></figure>
According to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent082324&amp;t=be2bearmibe3na1">Benzinga Pro</a> data: 
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;was 0.5% higher to $559.11.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;rose 0.6% to $409.93.</li>
<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rose 0.5% to $477.32.</li>
<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) rallied 3% to $220.06.</li>
<li>The Real Estate Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) outperformed, by 1.6%. The Consumer Staples Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>) lagged, down by 0.2%.</li>
</ul>
<h1 class="wp-block-heading">Friday&#8217;s Stock Movers</h1>
<ul>
<li>Restaurant chain Cava Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CAVA#NYSE">CAVA</a>) rallied 23%, after upbeat financial results last quarter.</li>
<li>Other stocks reacting to earnings were BILL Holdings, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BILL#NYSE">BILL</a>) down over 5%; Buckle, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BKE#NYSE">BKE</a>) up 6.9%; Ross Stores, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ROST#NASDAQ">ROST</a>) up 1.3%; Ubiquiti Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UI#NYSE">UI</a>) up 5.9 and Workday, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WDAY#NASDAQ">WDAY</a>), up over 11%.</li>
<li>Roku Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ROKU#NASDAQ">ROKU</a>) rallied over 12% after Guggenheim upgraded the stock from Neutral to Buy. </li>
<li>Mortgage-sensitive Redfin Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RDFN#NASDAQ">RDFN</a>) rallied over 20%. </li>
<li>Within regional banks, Eagle Bancorp, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EGBN#NYSE">EGBN</a>), United Community Banks Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCB#NYSE">UCB</a>) and Valley National Bancorp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VLY#NYSE">VLY</a>) were the strongest performers, up 10.5%, 9.6% and 8.5%, respectively. </li>
</ul>
Read More: • <a href="https://www.benzinga.com/government/24/08/40532173/powell-removes-any-uncertainty-around-september-rate-cuts-in-jackson-hole-speech-economists">Powell Removes &#8216;Any Uncertainty&#8217; Around September Rate Cuts In Jackson Hole Speech: Economists</a> 
Don&#8217;t miss the opportunity to dominate in a volatile market at the&nbsp;<a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Benzinga SmallCAP Conference</a>&nbsp;on Oct. 9-10 at the Chicago Marriott Downtown Magnificent Mile. Get exclusive access to CEO presentations, 1:1 meetings with investors, and valuable insights from top financial experts. Whether you&#8217;re a trader, entrepreneur, or investor, this event offers unparalleled opportunities to grow your portfolio and network with industry leaders. Secure your spot and get your tickets today!
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Russell 2000 Outshines S&P 500, Nasdaq 100 As Powell Eyes Rate Cuts; Dollar Sinks, Regional Banks Rocket: What's Driving Markets Friday?

Market strategist Jay Woods spoke with Benzinga ahead of Jerome Powell's<a href="https://www.benzinga.com/etfs/sector-etfs/24/08/40529209/jerome-powell-time-has-come-for-interest-rate-cuts-cooling-in-labor-market-unmistakable"> Jackson Hole speech Friday</a> to discuss a variety of topics: rate cuts, what the election means for stocks and <a href="https://www.benzinga.com/topic/small-caps">what's next for small caps</a>.
<h2 class="wp-block-heading">Fed Rate Cut</h2>
Woods says the Fed was late to raise rates and has been late to cut rates.
The <a href="https://www.benzinga.com/top-stories/24/08/40492530/fed-minutes-reveal-plausible-case-for-interest-rate-cut-as-policymakers-cheer-inflation-progress">expected rate cut </a>by the Federal Reserve in September comes as investors try to predict what will happen to the stock market — especially with the 2024 presidential election playing out before the end of the year.
The market has not had an August/September stretch-up in the past three years, Woods said, adding that he doesn't believe it will happen by the end of September.
"Most markets bottom in October," Woods said on the Aug. 22 edition of <a href="https://www.benzinga.com/premarket-prep">PreMarket Prep</a>.
When asked about the likelihood of a rate cut, Woods said there is 0% chance of no cut and that a cut should've already happened. He predicts the rate cut will more than likely be 25 basis points. A 50-point cut could play out too aggressively as a political move.
"Whatever happens, one side of the aisle is going to condemn him for cutting,&#8221; he said. 
The question for investors, Woods said, is if the rate cut is &#8220;already baked into stock prices.&#8221; 
&#8220;We already bought the rumor,&#8221; he added, citing how the other side of the popular phrase is &#8220;sell the news&#8221; and that's what might happen first.
Smart investors who bought the dip on Aug. 5 may want to lighten up as the market could get choppy and trade sideways, he warned. "I don't expect us to explode upward immediately on that initial rate cut on the 18th."
See below.
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<iframe loading="lazy" title="Jay Woods, CMT - Fed Rate Cuts" width="500" height="281" src="https://www.youtube.com/embed/emvAQLsC86k?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
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<h2 class="wp-block-heading">Small Cap Rally</h2>
Woods said when rates are cut in a non-recession time, the market typically rallies three months later, six months later and 12 months later.
One investment idea that often does well is small caps, an idea that Woods has been pounding the table on and shared <a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/24/07/39846454/exclusive-market-strategist-jay-woods-says-rotation-in-small-caps-is-just-starting-rus">with Benzinga previously.</a>
Woods said small-cap stocks, which are commonly tracked by the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) have yet to make their all-time highs again.
"When they move, they move quickly," Woods said. Recall how small caps moved up 27% from October to December in 2023.
"The setup is there for small caps,&#8221; he added.
The past month has seen consumer staples and utilities outperform the magnificent seven stocks with the equal weight S&amp;P 500, which is tracked by the Invesco S&amp;P 500 Equal Weight ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSP#NYSE">RSP</a>), outperforming the S&amp;P 500, which is tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>).
"This is healthy, but it's not sexy."
Read Also: <a href="https://www.benzinga.com/etfs/sector-etfs/24/08/40515453/exclusive-trump-or-harris-12-stocks-2-etfs-could-win-no-matter-whos-president-says-market-strate">EXCLUSIVE: Trump Or Harris? 12 Stocks, 2 ETFs Could Win No Matter Who&#8217;s President, Says Market Strategist</a>
Past Election Year Trends: Woods said he took a look at the 2016 and 2020 years to predict what happens in 2024, with 2020 having an outlier in the COVID-19 pandemic.
The Volatility Index, commonly referred to as the VIX, spiked early in both years and then again in September before the election.
"Headlines are going to cause a little angst," Woods said.
Woods recalled that both the 2016 and 2020 elections, each one involving Trump, were controversial.
"We rallied from Election Day into the end of the year," Woods said for 2016 and 2020 with Trump involved in both cases. "I think the setup is there."
SPY, IWM Price Action: The SPDR S&amp;P 500 ETF Trust is up 1% to $559.31 on Friday.
The iShares Russell 2000 ETF is up 3% to $219.69 on Friday.
Watch the full interview with Jay Woods on<a href="https://www.youtube.com/watch?v=vGXosi2hWTQ"> PreMarketPrep here</a>.
Read Next: 
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<li><a href="https://www.benzinga.com/exclusives/24/07/39886192/exclusive-tesla-an-elon-musk-and-a-technology-story-first-ev-story-last-market-strategist-explains-w">EXCLUSIVE: Tesla &#8216;An Elon Musk And A Technology Story First, EV Story Last&#8217; — Market Strategist Explains Why To Buy The Stock</a></li>
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