However, Mayfield noted a pause may not necessarily mean an end to its rate-hike campaign.
The uptick also raised hopes that the Fed would pause its rate-hiking campaign at its meeting next week. New data released on Thursday showed initial jobless claims reached their highest level since October 2021, indicating a potentially softening labor market. Mayfield added that the Fed may "feel a little bit more comfortable pausing in June, with plenty of optionality through July and beyond." Economic signs suggest that inflation is inching down, even as it remains above the central bank's 2% target. Investors seem to be in a holding pattern while awaiting the Fed's upcoming policy meeting on June 13 and 14. So overall, pretty healthy activity," said Ross Mayfield, investment strategy analyst at Baird. "For all the folks who are very concerned about the narrowness of the rally, there is a little bit of a rotation going on into some of the more beat-down value and cyclical stocks. However, the index dipped 0.4% on Thursday. The Russell 2000 is up 7.5% in June and almost 7% year to date, indicating a potentially more resilient economy beyond the big-tech boom. Small-cap stocks have been showing strength in recent weeks. The broader market index also hit its highest level since August this week, adding to a 2.7% rally month to date. The S&P 500 is coming off a down session but is still within striking distance of the key 4,300 level. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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