Small-cap stocks are on a tear, eyeing their fifth consecutive day of gains on Tuesday. TheiShares Russell 2000 ETF(NYSE:IWM) surged 1.9%, propelling the index to a cumulative gain of over 9% across the last five sessions. This remarkable streak represents the Russell 2000's best five-day performance since June 2020.
The turbocharged rise of small caps is attributed to the certainty at this point that the Federal Reserve will lower interest rates at its September meeting. In fact, the Russell 2000 rally kicked off last week, driven by June inflation data coming in below expectations, sparking traders' speculation about rate cuts.
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