Small cap stocks have tended to outperform their larger peers six to 12 months after volatility declines from extreme levels.
NEW YORK: Big gains in small caps stocks are fueling hopes that a bounce in broader equity markets may stick, as investors ponder how quickly the U.S. economy can emerge from its coronavirus-fueled slowdown.
The small-cap Russell 2000 index <.RUT> rose 13.7% in April, besting the benchmark S&P 500's <.SPX> 12.7% gain. Notably, the Russell's rally accelerated at the end of the month, when it notched six straight days with gains of at least 1%, its longest streak of such gains in two decades.
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