The Russell 2000 (small‑cap benchmark) climbed around 0.8%, signaling renewed interest in smaller-cap names.
These gains were fueled by optimism around potential Federal Reserve rate cuts, following Chair Jerome Powell’s dovish remarks, along with robust earnings reports across the board.Investors+4The Wall Street Journal+4Benzinga+4MarketWatch

August 26, 2025 marks a turning point for small-cap stocks, which historically lagged amid Big Tech dominance. Now, they’re beginning to break out, fueled by optimism surrounding potential interest rate cuts, economic stimulus from recent legislation, reduced macroeconomic uncertainty, and signs of economic reacceleration The Royce FundsAxios.

Markets opened the final week of August with a mix of caution and optimism after Friday’s broad-based rally. While major U.S. index futures slipped slightly this morning, investor sentiment remains buoyed by Fed Chair Jerome Powell’s comments at Jackson Hole hinting at possible rate cuts later this year.

Wall Street closed sharply higher today as Federal Reserve Chair Jerome Powell delivered a carefully worded but encouraging message at the annual Jackson Hole symposium.

North American markets opened Thursday with a cautious tone as investors digested mixed economic data and corporate earnings while awaiting guidance from the Federal Reserve at this week’s Jackson Hole symposium. Futures for the Dow, S&P 500, and Nasdaq each slipped around 0.4%, reflecting investor unease after a surprise jump in jobless claims.

Markets opened Wednesday on a cautious note as investors positioned ahead of the Jackson Hole Economic Symposium. With central banks expected to signal future policy direction, Canada’s equity markets reflected mixed sentiment across large, mid, and small-cap segments.