In the week leading up to July 26, 2024, U.S. financial markets experienced notable fluctuations, primarily driven by a sell-off in large-cap technology stocks and significant inflows into small-cap stocks. This shift is largely attributed to increasing speculation regarding a potential rate cut by the Federal Reserve, expected in September. Small-cap stocks and industrials had surged in value recently, although this trend paused mid-week. Analysts highlighted various factors influencing market dynamics, including tactical downside risks, valuations, and market confidence. The S&P 500 and Nasdaq indices faced pullbacks, prompting a reevaluation among investors. Market experts are closely monitoring these developments as they prepare for the upcoming week, emphasizing the impact of Federal Reserve policies and broader economic indicators on market performance.