With the Fed set to announce an interest-rate cut on Wednesday, KeyBanc analysts are questioning whether the REIT rally will continue through an extended cutting cycle and are predicting some near-term volatility.

The dollar traded near its lowest levels of the year on Tuesday, on the eve of the expected the start to a U.S. easing cycle that markets are betting may begin with an outsized rate cut. The euro rallied overnight to $1.

The dollar was lower on Monday while the yen hit its highest level in more than a year, as market participants increasingly expected an oversized rate cut by the Federal Reserve later this week.

U.S. small-cap stocks have staged an epic rally over the past month with the Federal Reserve set to cut interest rates for the first time since 2020 — but uncertainty on the economic and monetary-policy outlook still has investors fretting over whether gains can be sustained in one of the most roughed-up corners of the market.

The U.S. dollar fell on Friday to its lowest level in nearly nine months against the Japanese yen after media reports once again fueled speculation the Federal Reserve could deliver a super-sized 50-basis-point interest rate cut at its policy meeting next week.