Trump Rotation Has Small Caps Beating S&P 500 Most in Five Years
- Russell 2000 up 5 percent in two days amid five-day rally
- Big weighting in financial companies supports small-cap index
This article is for subscribers only.
President-elect Donald Trump’s promises to prioritize American corporations is doing wonders for the smallest companies in the stock market.
Small-cap shares had the biggest single-day rally over the larger peers in five years on Wednesday, according to data compiled by Bloomberg. The Russell 2000 Index surged 3.1 percent, compared with a gain in the S&P 500 Index of 1.1 percent. The reason may be speculation Trump’s homeward-looking policies will favor the more domestic small-cap index.