Wall Street had plenty to celebrate on Friday morning after hearing Federal Reserve Chairman Jerome Powell’s speech. His comments gave investors more confidence that interest rate cuts may be a reality in its September meeting, and that was enough to bring buyers back in a big way. The stock market came roaring back, ending the week in the green. Don’t Overlook the Small-Caps It wasn’t just tech stocks that were leading the charge in the broader indexes. Smaller companies, which often react more strongly to changes in interest rates, had a strong showing too. IWM broke above the resistance of its August 13–August 19 resistance level, which coincides with its early 2025 resistance level (blue dashed line). An upside move in small-cap stocks supports the overall bullish equity rally in the market. Interest rate-sensitive asset groups, such as homebuilders and regional banks, saw explosive moves on Friday. Pull up the chart of SPDR S&P Homebuilders ETF (XHB) and SPDR S&P Regional Banking ETF (KRE), and you'll see their moves are similar to what you see in the chart of IWM.