Investors are flocking to small-cap stocks right now, driving this segment of the market to new highs this week. The Russell 2000 index hit its highest level of 2,194.46 on Monday since January 2022 when the index traded as high as 2,196.74, according to CNBC analysis. The index, which comprises small-cap companies in the U.S. that derive most of their revenues domestically, rose more than 3% on Tuesday for its fifth straight day of gains.
"The playbook of "Trumponomics" policies is likely to be at the forefront under the slogan of "Make America Great Again" where tax cuts and perhaps subsidies may be targeted towards small and medium domestically oriented firms in the US which in turn improve their profitability prospects that may further boost the bullish sentiment towards Russell 2000," said Wong.
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