Reported 2 days ago
In 2025, small-cap stocks represented by the Russell 2000 have been gaining traction, reflecting a notable 10% increase. However, they still trail behind the S&P 500, which has risen over 13%. The Russell 2000’s performance is largely driven by speculative companies lacking profitability, raising concerns about the sustainability of this rally. Despite the potential for strong earnings growth in small caps driven by lower interest rates, analysts caution that their true competitive edge remains uncertain, suggesting that the S&P 500 will likely continue to dominate the market.
Source: YAHOO