The Federal Reserve’s decision to cut interest rates for the third straight time lifted investor sentiment on Wednesday, igniting gains in several high-beta stocks tied to clean energy, crypto mining and space tech.
• Cipher Mining stock is trading near recent highs. What’s ahead for CIFR stock?
The Russell 2000 index — as tracked by the iShares Russell 2000 ETF (NYSE:IWM) — jumped to 2,550 points, setting fresh record highs and marking a near 1% surge for the session, as investors continue to see small caps as the biggest beneficiary of reducing borrowing costs.
The Dow Jones, S&P 500 and the Nasdaq 100 added a few decimals of gains.
The rate cut, which lowered the federal funds target range to 3.5%–3.75%, came amid signs of cooling inflation and a softening labor market, although internal dissent within the Fed suggests that future policy moves remain uncertain.
Notably, the central bank also announced that it will begin purchasing U.S. Treasury bills starting Dec. 12, with $40 billion in planned purchases over 30 days to ensure an ample level of banking system reserves.
Fed Cut Ignites Rally In Small Cap Names
According to Benzinga Pro data, these were the top 10 performers with a market cap of at least $2 billion in the 30 minutes after the Fed’s rate decision.
Cipher Mining Inc. (NASDAQ:CIFR) topped the leaderboard, jumping 4.3%, followed by TeraWulf Inc. (NASDAQ:WULF) with a 4% gain.
NuScale Power Corp. (NYSE:SMR) rose 3.6%, while AST SpaceMobile Inc. (NASDAQ:ASTS) gained 3.6%.
Cleanspark Inc. (NASDAQ:CLSK) and Applied Optoelectronics Inc. (NASDAQ:AAOI) each advanced over 3.4%, with Lemonade Inc. (NYSE:LMND) closely behind at 3.5%.
Bitdeer Technologies Group (NASDAQ:BTDR) rose 3.3%, and Eos Energy Enterprises Inc. (NASDAQ:EOSE) climbed 3%. Powell Industries Inc. (NASDAQ:POWL) rounded out the top 10, adding 3%.
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