Direxion Small Cap Bull 3X

US Futures Close: S&P 500, Dow, Nasdaq 100, and Russell 2000 Mixed

U.S. Major Index Futures Close Mixed

Investors are shifting from large-cap tech stocks to small-cap stocks due to expectations of a Fed rate cut in September

InMed Pharmaceuticals

AMPLITECH GROUP INC. USD0.001 S/R 20/11/26 SER B

Amesite

CN Energy

AMPLITECH GROUP INC. COM USD0.001 (S/R 18/07/2026)

NextNRG

Meiwu Tech

Generation Income Properties

MetaVia

OceanPal

Kevin Warsh has been confirmed as the new chairman of the US Federal Reserve. While he asserts commitment to the Fed's independence, concerns arise about potential government influence. Warsh has criticized the Fed's interest rate strategies, reflecting some of President Trump's views, which may impact bond investors.

Businesstimes News

What bond investors should know about a Warsh-led Federal Reserve

SMDV

VTWV

The article argues against the traditional advice of 'Sell in May,' suggesting it could lead to costly mistakes this year. It highlights the potential for small-cap stocks, particularly the Russell 2000 index, which has outperformed the S&P 500 recently. The author emphasizes that July has historically been a strong month for the market, countering the notion that summer months are weak. An exclusive watchlist of small-cap stocks is also mentioned.

InvestorPlace

ISHRS Russ 2000 Growth

iShares Russell 2000

ProShares Ultra Russell2000 ETF

SPDR S&P 600 S-Cp Val

Vanguard Russell 2000 Growth

ISHRS Russ 2000 Val

Pro Rsl 2000 Dvd Grw

Avantis U.S. Small Cap Value

Vanguard Russell 2000 Value

VG S-Cp Grw

Vanguard Russell 2000

S&P 500

Forget “Sell in May” – This Could Be the Summer of Small Caps

Ivan Illan, Chief Investment Officer at AWAIM, discusses the paradox in the U.S. equity market as of mid-2026, highlighting strong earnings growth in the S&P 500 but elevated valuations. He advocates for a selective approach to U.S. small and mid-cap (SMID) companies, noting significant dispersion within the asset class that presents opportunities for active managers. However, he warns of risks related to debt refinancing and emphasizes the potential for well-positioned firms to gain market share. The manufacturing sector shows signs of recovery, further supporting selective SMID investment.

Forbes

iShares Core S&P Small Cap

VG S&P M-Cap 400

VG S-Cp Value

VG S&P M-Cap 400 Val

Avantis Int Small Cap Value

iShares Core S&P Mid Cap

Capital Group U.S. Small and Mid Cap ETF

VG S&P S-Cp 600

VG Mid-Cap Val

The SMID Cap Conundrum: Dispersion, Deleveraging And The Selective Opportunity Ahead

Economist Justin Wolfers cautioned that ongoing Middle East tensions could pose political risks for Republicans ahead of the November midterm elections, as rising oil prices and Treasury yields pressure the U.S. economy. He questioned when Congress would intervene to protect their positions, noting that the conflict has led to significant oil supply losses and increased inflationary conditions.

benzinga_article

Shutterstock

Justin Wolfers Warns 'Mess' In Middle East Will Continue Through The Midterms, Wonders If Republicans In Congress Will 'Step In' To Save Their Jobs

U.S. inflation is projected to hit 4.18% in May, influenced by oil supply disruptions from the Iran war. New Fed Chair Kevin Warsh may favor higher rates amid policy uncertainty, challenging market expectations for cuts. Investors are shifting strategies, moving from complex portfolios to small-cap stocks to cope with ongoing inflation.

Occidental Petroleum

ISHRS S&P Glb Engy

VanEck Oil Refiners ETF

iShares US Oil & Gas Expl & Prod

SPDR O&G Equip

VanEck Oil Services ETF

SPDR O&G Ex & Prd

Us Brent Oil

iShares US Oil Equip & Svcs

Pro Ultr Bloomberg Crude Oil

VG Energy

SPDR Energy Select

Vanguard Total Inflation Protd Secs ETF

United States Oil Fund LP

Inflation surge forces rethink of wealth-building strategies

The AI boom has led to record spending, with top tech firms projected to invest $800B this year, increasing to $1.1T next year, representing over 3% of GDP. However, this growth has deepened economic divides, as around 10,000 AI insiders have gained over $20M each, while most workers see minimal benefits. Additionally, the AI gains obscure underlying economic issues such as tariffs, war, and sluggish consumer spending.

AI boom fuels record spending but deepens economic divide

Vice President JD Vance asserts that the Trump administration is making progress in strengthening the U.S. economy, with signs of wage growth and economic improvement following challenges inherited from the Biden administration. He acknowledges ongoing economic concerns, including inflation and cost of living, while emphasizing the administration's focus on long-term prosperity, job creation, and reducing inflationary pressures. The economic performance remains a key political issue as the nation approaches the next election cycle.

JD Vance says Trump economy is ‘digging out’ from Biden era

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Treasury yields have surged to multi-year highs, with the 30-year yield exceeding 5.1% and the 10-year at 4.6%, driven by inflation concerns. Futures markets indicate a strong likelihood of a Fed rate hike by early 2027, potentially as soon as December. These higher yields could increase mortgage and corporate borrowing costs, negatively impact stocks, and slow economic growth.

Dow Jones Industrial Average

Dow Jones U.S. Index

NASDAQ Composite Index

NASDAQ-100

Bond yields hit highs as Fed hike bets surge

One result of the massive monetary expansion was an upsurge in inflation, to a peak of over 9% in 2022—which the Fed infamously termed “transitory.”

Grading Powell’s Fed: Good for stocks, bad for affordability

The U.S. Securities and Exchange Commission has settled a civil lawsuit against Indian billionaire Gautam Adani, pending court approval. Additionally, the Justice Department is reportedly close to dropping related criminal fraud charges against Adani, who has pledged to invest $10 billion in the U.S. economy.

Yahoo Finance

US SEC settles civil lawsuit against Indian billionaire Adani subject to court approval

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