Russell 2000 scores fresh record for the first time in 4 years. Why the small-cap rally still has room to run.
1. Small caps rallied 2.5%, closing at a record high for the first time since Nov 2021. 2. The Fed's rate cut boosts small-cap sensitivity and potential earnings growth. 3. Small-cap stocks outperformed large caps, gaining 13.5% since August compared to S&P 500's 6.9%. 4. Valuations show a 24% premium for large caps versus small caps' 2% premium. 5. Investors cautious about potential economic weakness affecting small-cap momentum.