Drawing on Nuveen’s CIO perspective, the commentary outlines how the post-shutdown data reset is reshaping equity positioning.
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Earnings momentum remains strong, but lofty tech valuations and wavering sentiment broaden the case for diversifying beyond mega caps.
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Improving economic resilience, normalizing inflation and expected Fed easing support an earnings rebound in smaller companies.
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Relative valuations now favor U.S. small caps, which have historically outperformed early in easing cycles due to lower financing costs and higher operating leverage.
For deeper context on how these dynamics may guide allocation shifts into 2026, the full commentary offers further insight.
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