🔴 Vanguard Small-Cap Index Fund ETF Shares is trading 3.8% down today after hawkish Fed hold and higher-for-longer signal

Vanguard Small-Cap Index Fund ETF Shares is trading 3.8% down in pre-market action after the Federal Reserve held interest rates at 3.50%–3.75% but signaled a higher-for-longer stance and the potential for another hike this year.

• Small-cap and economically sensitive sectors are under significant pressure as higher yields and policy uncertainty weigh more heavily on smaller companies than on large-cap peers.
• The fund is being dragged lower by its heavy exposure to industrials, financials, and consumer discretionary sectors, which together account for over 40% of the ETF's holdings.