Bank of America: Powell's speech may be a short-term catalyst for small-cap stocks in the U.S. Long-term recovery still depends on fundamentals.

Wisdom Securities APP learned that Bank of America released a research report stating that the speech by Federal Reserve Chairman Powell at the Jackson Hole Global Central Bank Annual Meeting on Friday may become the biggest catalyst for the Russell 2000 index, which is mainly composed of small-cap stocks, in the near future (both positive or negative are possible). Powell's dovish speech may stimulate a rebound in small-cap stocks, while a more hawkish speech may bring short-term downside risks - especially as the market has already priced in two interest rate cuts by the Federal Reserve this year.