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Small-cap stocks, represented by the Russell 2000, are positioned to potentially outperform the large-cap S&P 500 in 2026, driven by anticipated Federal Reserve rate cuts and superior earnings growth projections.
Amundi has reduced its U.S. bond duration, signaling institutional concern over economic weakness and Federal Reserve policy. The move aligns with a broader market shift toward shorter-duration assets and cyclical stocks ahead of a pivotal Fed interest rate decision.