With the expectation that interest rate reduction will broaden the economic recovery to their advantage, small-cap equities are soaring at the moment, having supplanted megacap technology shares as the leader of the bull market last week.
On Monday, the benchmark for the group, the Russell 2000 index, reached a level not seen since January 2022.
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%.
Tuesday’s premarket action saw a 1% increase in the index-tracking iShares Russell 2000 ETF.
Over the past month, the ETF has increased by 9%, roughly tripling the gains in the S&P 500.
Source (CNBC)
