Why are Small Caps in the Doldrums? | Presented by CME Group

Historically, small cap stocks are often more sensitive to economic cycles and interest rate changes than their large cap counterparts. Why are rate cuts good for small cap stocks. Small cap stocks historically have outperformed large caps by 2 to 3% annually, but recently they've lagged behind in the current economic environment due to high interest rates and economic uncertainty.The Federal Reserve's high rate environment since 2022 has weighed heavily on small caps, which typically rely on borrowing to f ...