The bull market is currently being led by small-cap equities, which are soaring because they believe that interest rate reduction would help the economy recover more broadly, displacing megacap technology companies.
Monday’s peak was the highest since January 2022, and on Tuesday the benchmark for the group, the Russell 2000 index, increased by 1.8%.
The seventh occasion since 1979 that the index has experienced a five-day run of gains above 1% will occur if it gains an additional 1% on Tuesday, as per Bespoke Investment Group.
In just one month, the small cap benchmark has gained around 11%, almost three times the gains in the S&P 500.
Source (CNBC)
