Small-Caps Poised for Breakout as Earnings and Policy Tailwinds Converge
The Russell 2000 and S&P 600 have surged over 4% year-to-date, outpacing large-cap benchmarks. Bank of America highlights 30 small-cap stocks with projected 30% upside, signaling renewed institutional interest in the segment.
Monetary policy shifts and tariff reductions could further catalyze gains. "Earnings outperformance should drive small caps to lead," notes Jill Carey Hall, BofA's small- and mid-cap strategist, underscoring the sector's rebound potential after years of lagging.