Small Caps Shine Amid Rate Cut Expectations, but Stagflation Risks Loom

Published on September 11, 2025

Markets cheered an imminent Fed rate cut, with small caps outpacing the S&P 500, but rising unemployment, sticky inflation, and slowing job growth point to stagflation risks. Advisors face a market both buoyed by near-term catalysts and shadowed by longer-term vulnerabilities.

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