Small Cap Rally Signals Risk-On Sentiment Amid Economic Uncertainty
The Russell 2000's 8.1% surge since August 11 has outpaced major indices, with over 150 constituents gaining 25%+ in 30 days. This small-cap rebound—traditionally a bullish economic indicator—reflects growing investor appetite for risk assets despite mixed macroeconomic data.
Median market cap of $945 million highlights the speculative nature of the rally. The breadth of participation suggests a potential rotation into undervalued segments, mirroring crypto market dynamics where altcoins often lead during risk-on phases.