Goldman says this investment is seen as a potential Trump trade and it's jumping Monday

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Ishares Russell 2000 ETF News

Russell 2000 Index,Markets,Investment Strategy

Small cap stocks outperformed after Donald Trump's win in 2016, according to Goldman Sachs.

The recent rebound for small cap stocks could possibly grow into a more sustained rally if former President Donald Trump wins a second term, according to Goldman Sachs. The Russell 2000 gained 6% last week, its best week of the year, and looks poised to rally further on Monday. The iShares Russell 2000 ETF was up 1% in premarket trading. IWM 5D mountain Small cap stocks are coming off their best week of 2024.

Trump's betting market odds of winning the election have steadily climbed in recent weeks since the debate against President Joe Biden in June. As of Monday morning, PredictIt showed roughly 66% odds of a Trump win. Kostin said that small caps outperformed after Trump's 2016 election, but that was when interest rates were much lower. Rates could be key for the group going forward, regardless of who wins in November.

 

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