Records for S&P & Nasdaq; Small Caps Extend Rebound on Fed-Cut Bets

August 13, 2025 — SmallCap Network
U.S. stocks pushed higher again, with the S&P 500 and Nasdaq notching fresh record territory, as traders priced in high odds of a September Fed rate cut following cooler July inflation. The Dow advanced, and small caps outperformedfor a second straight session.

Today’s tape at a glance

Mega-cap momentum, but breadth improves: S&P 500 and Nasdaq continue to make new highs on rate-cut hopes, while cyclicals and domestically focused names join the move.

Small caps: follow-through day: The Russell 2000 added ~1% today after ~3% yesterday—its best day since May—signaling a potential leadership handoff from mega caps to the broader market.

Macro driver: Softer July CPI has reinforced expectations for policy easing next month, keeping yields under pressure and growth assets bid.

Small-cap heat check (pre-market leaders)

Traders continued to rotate into catalysts across micro/small caps. Notables on this morning’s pre-market boards: MNTS, BSLK, SPNS, ATNF, WBTN, GBIO. Keep these on the radar for liquidity and follow-through into the close.

Why this matters for SCN readers

Breadth + liquidity: Back-to-back strength in the Russell 2000 often precedes broader participation—good news for discovery in under-followed names.

Rates as the fulcrum: A credible path to a September cut lowers discount rates and can lift multiples, especially for earlier-stage growth companies with 2026–2027 cash-flow stories.

Catalyst hunting: Pair the macro tailwind with stock-specific triggers (earnings beats, M&A chatter, balance-sheet inflections) to target asymmetric setups.

Game plan (quick)

Screen for small caps breaking 20-/50-DMA with volume; confirm catalysts.

Respect liquidity: Size positions to average daily volume; avoid chasing thin spreads.

Set brackets: Pre-define stops/targets; volatility can cut both ways on Fed-headline days.

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