Investors are eagerly awaiting Jerome Powell’s speech at Jackson Hole, with nervousness prompting a sell-off in high-flying growth stocks. Bank of America predicts big moves for small-cap stocks based on Powell’s remarks about monetary policy. The speech could be a catalyst for the Russell 2000 index, depending on its tone. Markets are uncertain about potential rate cuts in September, with small-caps historically outperforming during rate-cutting cycles. Despite optimism for small-cap stocks, the possibility of a recession in the US remains unclear, adding to the anticipation surrounding Powell’s address.

Read more at Yahoo Finance: Brace for Jerome Powell’s Jackson Hole speech to drive big swings in this corner of the stock market, BofA says