"Small-Cap Stocks Surge in Best Rally in Over 4 Years"

1 min read
Source: Benzinga
"Small-Cap Stocks Surge in Best Rally in Over 4 Years"
Photo: Benzinga
TL;DR Summary

Small-cap stocks are experiencing a significant rally, with the Russell 2000 index achieving its best five-day performance since June 2020, driven by expectations of a Federal Reserve interest rate cut in September. The iShares Russell 2000 ETF surged 1.9%, contributing to a cumulative gain of over 9% in the last five sessions. Investors are shifting focus from large-cap tech stocks to small caps, which are more sensitive to interest rate changes. However, experts caution about the sustainability of this rally, given uncertainties in regional banks' earnings and ongoing high yields.

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