Thursday, 30 Oct 2025
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA
logo logo
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
  • 🔥
  • Trump
  • VIDEO
  • House
  • White
  • ScienceAlert
  • Trumps
  • Watch
  • man
  • Health
  • Season
Font ResizerAa
American FocusAmerican Focus
Search
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
Follow US
© 2024 americanfocus.online – All Rights Reserved.
American Focus > Blog > Economy > Wells Fargo downgrades US small-cap equities to ‘unfavourable’
Economy

Wells Fargo downgrades US small-cap equities to ‘unfavourable’

Last updated: August 6, 2025 5:45 pm
Share
Wells Fargo downgrades US small-cap equities to ‘unfavourable’
SHARE

Wells Fargo Investment Institute Downgrades U.S. Small-Cap Equities

In a recent development, Wells Fargo Investment Institute has downgraded U.S. small-cap equities to “unfavorable” from “neutral”, citing concerns over heavy tariff exposure, elevated interest rates, and a weak earnings record. This downgrade comes at a time when the broader U.S. equity market has been experiencing a rebound, driven by easing trading tensions and strong corporate earnings.

While the larger S&P 500 index has seen a gain of 7% this year, the small-cap Russell 2000 index has lagged behind, falling by 0.9%. Wells Fargo strategists pointed out that small caps are more vulnerable to tariff frictions due to their less flexible supply chains and thinner margins compared to their larger counterparts. Additionally, with interest rates currently higher than in past economic cycles, small-cap equities are at risk.

The earnings performance of small-cap companies has also been a cause for concern, with about 25% of the companies in the Russell 2000 index missing analysts’ expectations, compared to about 15% in the large-cap segment. This poor earnings track record, coupled with a significant portion of index components reporting no profits, has further added to the challenges faced by small-cap equities.

In addition to the downgrade of small-cap equities, Wells Fargo also revised its stance on the U.S. energy and communication services sector, as well as the broader commodities asset class, to “neutral” from “favorable”. The investment institute foresees a turbulent second half of 2025 due to tariff-related headwinds but remains optimistic about the economy’s trajectory, expecting momentum to strengthen in 2026 with trade uncertainties posing a minimal threat.

See also  Food Network Unveils Holiday 2025 Slate: ‘Tournament of Champions’ Christmas Spinoff, Wells Adams-Hosted Dessert Competition and More ‘Harry Potter’ Bake Off

In conclusion, the downgrading of U.S. small-cap equities by Wells Fargo Investment Institute reflects the challenges faced by this segment of the market. While uncertainties persist, the institute remains hopeful for a positive economic outlook in the coming years.

This article was reported by Joel Jose in Bengaluru and edited by Vijay Kishore.

TAGGED:DowngradesequitiesFargoSmallCapunfavourableWells
Share This Article
Twitter Email Copy Link Print
Previous Article ‘Tipping points’ hope for climate ‘Tipping points’ hope for climate
Next Article ‘Make a noise so police can find you’: Victim’s 911 call led cops rapist, prosecutors say ‘Make a noise so police can find you’: Victim’s 911 call led cops rapist, prosecutors say
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Popular Posts

Harris Campaign Says It’s Raised $540M, Sees Surge Of Donations During DNC

The fundraising efforts for Vice President Harris' campaign have been incredibly successful since President Joe…

August 25, 2024

Trump Says He’s ‘All For’ Sending U.S. Citizens To El Salvador

President Donald Trump reaffirmed his support on Monday for the controversial plan to send U.S.…

April 14, 2025

Southern Charm Star Craig Conover’s Dating History

Credit: Courtesy of Craig Conover/Instagram Paige DeSorbo Paige DeSorbo and Craig Conover's relationship began during…

July 14, 2025

Save 10% on Online Glasses

Teachers looking for affordable and stylish eyewear will be thrilled to learn about the 10%…

May 27, 2025

Asteroid 2024 YR4 is on collision course with the moon and could fire shrapnel at Earth

Asteroid 2024 YR4 could result in the largest impact on the moon for the past…

June 18, 2025

You Might Also Like

Fed’s Standing Repo Facility hits record high as policy meeting outcome looms
Economy

Fed’s Standing Repo Facility hits record high as policy meeting outcome looms

October 30, 2025
BofA Raises PT on Embraer (ERJ) to  Following Investor Day
Economy

BofA Raises PT on Embraer (ERJ) to $70 Following Investor Day

October 30, 2025
What To Expect From Micron Technology’s Report
Economy

What To Expect From Micron Technology’s Report

October 30, 2025
Alluvial Capital Management’s Views on FitLife Brands (FTLF)
Economy

Alluvial Capital Management’s Views on FitLife Brands (FTLF)

October 30, 2025
logo logo
Facebook Twitter Youtube

About US


Explore global affairs, political insights, and linguistic origins. Stay informed with our comprehensive coverage of world news, politics, and Lifestyle.

Top Categories
  • Crime
  • Environment
  • Sports
  • Tech and Science
Usefull Links
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA

© 2024 americanfocus.online –  All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?