Small-Caps Lose Year’s Edge Over Tech With Bearish Bets Rising
- Inflation report hastens the rotation out of cyclical shares
- Nasdaq 100 solidifies lead on renewed growth, virus concern
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Count small-cap stocks among the casualties of the quickly unraveling reflation trade.
The Russell 2000 Index fell more than 1% on Tuesday as the fastest inflation since 2008 fueled concern over pricing pressures and the growth potential of smaller U.S. companies. The retreat contrasts with a gain in the Nasdaq 100, where technology megacaps are increasingly favored for their strong earnings potential.