Small cap stocks will benefit from a debt ceiling deal. STUART KAISER, HEAD OF EQUITY TRADING STRATEGY, CITI, NEW YORK:
“The debt ceiling deal removes a tail risk to economic growth but doesn't meaningfully shift the base case. As a result, it's a modest positive for equity markets at the index level but incrementally more positive for areas such as weak balance sheet stocks, small cap and perhaps cyclicals. Those have underperformed recently and have higher exposure to growth and credit risks.”