In the hopes that interest rate cuts will broaden the economic recovery to their advantage, small-cap equities are soaring at the moment.
Last week, they overtook megacap technology shares as the leaders of the bull market. The benchmark for the group, the Russell 2000 index, increased 3.3% on Tuesday after reaching its highest point since January 2022 on Monday.
As per Bespoke Investment Group, if the index gains an additional 1% on Tuesday, it will mark the fifth instance since 1979 in which it has experienced a five-day run of gains over 1%.
Over the last month, the small-cap benchmark has increased by 12%, which is quadruple the S&P 500’s gains.
Source (CNBC)
