If history is any guide, small stocks could get an outsized boost from a Federal Reserve rate cut Wednesday and any that may follow the rest of the year. The U.S. central bank is almost universally expected to lower its federal funds rate by 25 basis points — or a quarter percentage point — at the end of its two-day, September meeting. The CME FedWatch Tool shows that the market has priced in a 96% probability of a quarter-percentage-point cut and just a 4% chance that the Fed cuts by a half-percentage point. While most asset classes stand to benefit from easier monetary policy, which can spur economic growth and higher profits, stocks with smaller capitalizations stand to benefit the most, Canaccord Genuity wrote in a note earlier this month. That's because lower interest rates make borro
Post-pause rate cuts have been a great time for small caps, history shows

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