Small caps are back. The week saw a familiar S&P 500 and Nasdaq hit fresh all-time highs, while a long-lost little brother, Wall Street’s small-cap benchmark the Russell 2000, surged to a record close, marking its first peak since a bull run to November 2021.

The rally signals renewed investor confidence in small caps. The sector is riding a wave of optimism and bull run data, which historically delivers robust returns when the United States Federal Reserve cuts rates.

This week’s Bulls N’ Bears ASX Runner of the Week is… Stakk Limited.

Reduced policy rates are particularly beneficial for smaller, rate-sensitive firms, which rely heavily on debt financing. As a result, the gap is narrowing between the underperforming small caps and the blue chips. After years of divergence, the punters’

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