IWM ETF

US stock markets (^DJI, ^IXIC, ^GSPC) closed lower on Monday, although some indexes managed to reduce their losses caused by tariffs from the Trump administration. The Nasdaq Composite dropped by 1.2%. For more expert analysis on the market's performance and sector variations, you can watch Market Domination Overtime.

The iShares Russell 2000 ETF (IWM) fell sharply in the futures market as investors sold off small cap stocks. On Monday, it reached $221.60, marking its lowest point since January 14.

Stock markets (^DJI, ^IXIC, ^GSPC) are declining after the Trump administration announced new tariffs on imports from Mexico, Canada, and China, effective February 1. Portfolio Manager Sandy Villere from Villere & Co. suggests that investors should focus on domestic small to mid-cap companies instead of large, expensive tech stocks. He believes that the tariffs will likely boost the US dollar, making it harder for big multinational companies to thrive.

The iShares Russell 2000 ETF has not changed much since February 2021, and rising interest rates along with lower earnings estimates for 2025 are frustrating investors. The current P/E ratio of 26.2 is much higher than its average, indicating potential investment challenges. Additionally, tight credit spreads at a low of 2.56% restrict the chances for growth in the P/E ratio, suggesting limited potential for the ETF.

Wall Street analysts are becoming more positive about small-cap stocks (IWM, ^RUT) as they see them as a strong sector for 2025. Yahoo Finance anchor Josh Lipton looks into the main reasons behind this optimism and what is drawing investors to this area. For more expert opinions and analysis on current market trends, visit Wealth. This article was written by Angel Smith.

Following a strong performance in 2024, sellers have regained control on Wall Street. Investors need to pay attention to the five indicators discussed in this article to figure out the next major shift in the market.

Recently, the overall economic situation has changed significantly due to updates in the Fed's dot plot and expectations for more interest rate cuts. A more aggressive interest rate forecast might create more challenges for IWM compared to SPY. However, the current valuation gap between IWM and SPY is quite large, which helps to balance out the potential risks.

The iShares Russell 2000 ETF (IWM) fell sharply after the Federal Reserve announced a very aggressive interest rate decision. It dropped more than 3%, hitting a low of $218, which is its lowest point since November 5.

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