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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