Riskier Small Caps Seen Outperforming in 2026 on Growth Outlook
Yahoo Finance·2025-12-15 18:30

Bloomberg The fast-paced rally in small caps, sidelined for much of this year, has been fueled by a combination of falling interest rates and economic growth — dual tailwinds that many on Wall Street see as likely to propel the riskier group to market leading gains next year. The third Federal Reserve rate cut in as many meetings, and the prospect of more easing to come, has driven the Russell 2000 Index to outperform the S&P 500 Index for a fourth straight week, which ties for the longest such stretch i ...