Group 1 - The focus of the U.S. stock market is shifting from the "seven giants" tech stocks to small-cap stocks, with the S&P SmallCap 600 and Russell 2000 indices rising by 6% and 7% respectively over the past three months, although still lagging behind the Nasdaq 100's nearly 9% increase [1][3] - Francis Gannon from Royce Investment Partners believes that value-oriented small-cap stocks will benefit the most from potential interest rate cuts, as these companies hold more floating-rate debt compared to large enterprises, making their financing costs more directly impacted [1][2] - The recent "Big and Beautiful" bill passed by Congress, which includes stimulus and tax reduction measures, may further boost the performance of small-cap companies [1] Group 2 - Bank of America’s strategy team indicates that interest rate cuts could lead to stronger short-term excess returns for small-cap stocks, which are more sensitive to interest rate changes [2] - The report highlights that during the Federal Reserve's easing cycle, value-oriented small-cap stocks tend to outperform growth stocks, with high-quality stocks outperforming high-risk companies [2] - The S&P 600 index currently has a price-to-earnings ratio of about 17 times, nearly 30% lower than that of the S&P 500, indicating a valuation advantage for small-cap stocks [2]

Group 1 - The focus of the U.S. stock market is shifting from the "seven giants" tech stocks to small-cap stocks, with the S&P SmallCap 600 and Russell 2000 indices rising by 6% and 7% respectively over the past three months, although still lagging behind the Nasdaq 100's nearly 9% increase [1] - Francis Gannon from Royce Investment Partners believes that value-oriented small-cap stocks will benefit the most from potential interest rate cuts, as these companies hold more floating-rate debt compared to large enterprises, making their financing costs more directly impacted [1] - The recently passed "Big and Beautiful" bill by the U.S. Congress, which includes stimulus and tax reduction measures, may further boost the performance of small-cap companies [1] Group 2 - Bank of America’s strategy team indicates that interest rate cuts could lead to stronger short-term excess returns for small-cap stocks, as they are more sensitive to interest rate changes [2] - The report highlights that during the Federal Reserve's easing cycle, value-oriented small-cap stocks tend to outperform growth stocks, with high-quality stocks outperforming high-risk companies [2] - The S&P 600 index currently has a price-to-earnings ratio of about 17 times, nearly 30% lower than that of the S&P 500, which historically has only seen a 25% discount [2] Group 3 - Market participants believe that small-cap stocks are becoming a new investment stage, especially with the potential for interest rate cuts from the Federal Reserve [3]