Builders FirstSource and other home building stocks jump as Federal Reserve Chairman Jerome Powell signals interest-rate cuts could be coming.

Since March 2021, on a total return basis, small cap stocks have underperformed large cap stocks by almost 60%, according to Bloomberg.

The iShares U.S. Home Construction ETF was rallying 5.1% toward an eight-month high in recent trading, with all 46 of its equity components gaining ground. The ETF has now soared 26% amid a three-month winning streak.

Here are some of the stories Wall Street is watching on Friday, Aug. 22. Stocks and cryptocurrencies surged after Fed Chair Jerome Powell hinted that rate cuts could be on the way in his Jackson Hole speech.

With defense spending and uncertainty rising, the demand for products from General Dynamics, Northrop Grumman, and others is only likely to grow, providing a continued boost to their stocks.

Technology stocks were pushing sharply higher on Friday after Federal Reserve Chair Jerome Powell said the time may be coming for rate cuts to resume. Tesla Inc. shares were up about 4.5%, leading the so-called Magnificent Seven stocks higher,

Chinese equities are surging. The Shanghai Composite Index — dominated by retail investors — is up about 13% this year.

Intel got some big new equity holders, Home Depot plans to raise prices in the face of tariffs, Meta freezes hiring in its AI division and Target names a new CEO. The week in big gainers and losers.