Stocks, Gold Rise on Bet on Aggressive Fed Rate Cut

Wall Street is experiencing a significant shift in investment strategies as traders increasingly bet on a substantial Federal Reserve rate cut. This has led to a rotation from tech giants to smaller, economically sensitive stocks. The Russell 2000 index of smaller firms outperformed tech megacaps, while an equal-weighted version of the S&P 500 beat the standard benchmark. This rotation suggests a broadening of the market rally beyond the handful of tech companies that have dominated gains so far this year, as investors anticipate that Fed rate cuts will boost the broader economy.