Analysis-US small-cap stocks break out, but for how long?
By Lewis Krauskopf
NEW YORK (Reuters) -Long-lagging U.S. small-cap stocks are having a moment in the sun, but the interest rate outlook, the strength of their earnings and the health of the economy will help determine whether they are experiencing a new dawn or another false start.
The small-cap Russell 2000 surged 7% in August versus a nearly 2% rise for the S&P 500, the stock market benchmark. The Russell index dipped as September kicked off this week on a sour note for stocks, but its recent strength put it within about 4% of its November 2021 record closing high.
However, the S&P 500 is on pace to beat the Russell 2000’s annual performance for the 10th time in the past 12 years, a period that has seen the large-cap…
