Small Company Shares Fall Behind in Sign of Economic Worry

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The lagging performance of small-cap stocks versus big-company stocks reflects doubts in the underlying economy

While the most-closely watched U.S. stock market gauges have hit new records this year, shares in smaller U.S. companies have taken a beating. Investors are beginning to wonder if that is a taste of what is to come with the wider market.

The Russell 2000 index, a gauge that tracks companies with smaller stock-market capitalizations, has lost 9% over the past year, while the S&P 500 index tracking the biggest American corporations has rallied about 6% on hopes of rate cuts from the U.S. Federal Reserve. A measure of the...

 

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No it dosen't. It directly reflects the fact that buyers are not willing to bid up the price of small cap stocks. To interpret that as doubts in the underlying economy requires proof to which you have presented none. You ignore the many factors that can go into pricing.

GOP POTUS.

Why is this downvoted? The problem is with this sub.

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