US stocks did their best to overcome continued pressure from the sell-off of AI companies recently. But additional headwinds were evident as the 60-day US-Iranian “ceasefire” clock expired with both sides far from any agreement or extension. The iShares Micro-cap ETF (IWC) is a new buy here, writes Brian Kelly, editor of MoneyLetter.
With threats of the bombing of Oman and an announcement by President Trump that the Strait of Hormuz was now a US Territory, markets have had much to overcome. While this growing uncertainty stressed markets earlier, a suspension of planned 50% tariffs on a new group of Canadian imports brought the most recent round of “TACO” jeers.
iShares Micro-Cap ETF (IWC)
Overall, after two weeks of gains, growing uncertainty led all four of our major global stock markets to retreat during the one-week reporting period. From August 13 through August 19, the S&P 500 Index (^SPX) declined 1%; the Euro Stoxx 50 was down 1.7%; the Nikkei 225 lost 5%; the Shanghai Composite slipped 1.6%.
We are keeping our eye on the upcoming Federal Reserve meeting in September. For now, add the IWC. The ETF seeks to track the investment results of the Russell Microcap Index, which measures the performance of the microcap sector of the US markets.
