Small-Cap U.S. Stocks Surge as Inflation Cools

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Small-Cap,U.S. Stocks,Inflation

Small-cap U.S. stocks, which have been lagging their large-cap peers all year, surged more than 5% Tuesday, after October's CPI data showed inflation cooling at a faster pace than expected. The iShares Russell 2000 ETF (IWM) had its best day since November 2022. Small caps have been struggling due to rising interest rates, but the recent drop in Treasury yields is giving them a boost.

Small-cap U.S. stocks surged more than 5% after October's CPI data showed inflation cooling at a faster pace than expected. The iShares Russell 2000 ETF (IWM) had its best day since November 2022. Small caps have been struggling due to rising interest rates, but the recent drop in Treasury yields is giving them a boost.

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