Zhi Tong Cai Jing·2025-08-25 23:23Group 1 - The core viewpoint is that small-cap stocks are experiencing a rotation of funds from large-cap technology stocks, supported by dovish signals from the Federal Reserve Chairman Jerome Powell, indicating potential interest rate cuts [1][2] - The Russell 2000 index, a benchmark for small-cap stocks, has outperformed the Nasdaq 100 index in recent weeks, with a 9% increase over three weeks compared to a 3.2% rise for the Nasdaq [1] - Following Powell's comments, the Russell 2000 index saw a single-day increase of 3.9%, marking its best performance since early April, and the inflow into the iShares Russell 2000 ETF reached the highest level since November of the previous year [2] Group 2 - Analysts from Bank of America and UBS believe that small-cap stocks may continue to outperform large-cap stocks in the near term, provided there are no significant macroeconomic surprises [1] - RBC Capital Markets noted that small-cap stocks have finally broken out of their consolidation phase, driven by investor repositioning and outflows from large-cap tech stocks [2] - Truist Financial raised its rating on U.S. small-cap stocks from "less attractive" to "neutral," citing valuation advantages and improving earnings trends [3]