1. RUT has risen over 13% in 2025, outperforming the DJIA. 2. Rising Treasury yields are tightening conditions for small-cap firms. 3. Projected earnings growth for RUT is 77.8% for 2025-26. 4. Wall Street turned bullish on small caps amid Fed policy optimism. 5. 40% of RUT companies reported negative net income last quarter.
FAQ
Why Bullish?
Despite rising yields, strong earnings growth projections support small-cap valuation. Historically, small caps outperform in early economic cycles.
How important is it?
The article details shifts in sentiment and earnings outlooks for small caps affecting RUT's trajectory.
Why Short Term?
The immediate focus is on upcoming Fed meetings affecting market sentiment and interest rates.