Core Viewpoint - The rebound momentum of small-cap stocks in the U.S. is fading, with concerns that the pace and extent of interest rate cuts may not sufficiently alleviate the pressure on highly leveraged companies [1] Market Performance - The Russell 2000 index has experienced consecutive daily declines in September after achieving a 7% increase in August, marking its best monthly performance of the year [1] - The 30-year U.S. Treasury yield approaching 5% raises market concerns, indicating that even if the Federal Reserve takes action, bond market rates may remain elevated for an extended period, negatively impacting small-cap stock sentiment [1] Economic Outlook - Despite potential interest rate cuts by the Federal Reserve this month, there are worries that the Fed may subsequently pause, compounded by an uncertain economic outlook in the U.S., which increases overall uncertainty [1] Investment Strategy - Analysts suggest prioritizing companies with robust earnings that can withstand uncertainty in the current environment [1] - According to Boston, the head of global small-cap stocks at Polar Capital, if a rate-cutting cycle begins, growth-oriented small-cap stocks are likely to outperform within the sector, while value-oriented companies may lag [1]