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Small-Cap Stocks Surge Amid Investor Shift, Rally Concerns Rise

7/23/2025

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Summary

Story summary

Small-cap and cyclical stocks are making a comeback in the U.S. market, as investors shift their gaze from large-cap tech. The E-mini Russell 2000 Index surged 3.5% in July, approaching a promising 'golden cross' signal. Yet, worries linger about the sustainability of this rally, with high inflation and tariffs weighing heavily on small businesses.

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Story summary

Small-cap and cyclical stocks are making a comeback in the U.S. market, as investors shift their gaze from large-cap tech. The E-mini Russell 2000 Index surged 3.5% in July, approaching a promising 'golden cross' signal. Yet, worries linger about the sustainability of this rally, with high inflation and tariffs weighing heavily on small businesses.