Small-cap stocks are experiencing remarkable growth momentum, with the Russell 2000 index positioned to achieve its strongest annual performance in over two decades. This resurgence is driven by multiple factors including accelerating artificial intelligence investments, anticipated corporate tax reforms, and attractive valuations relative to larger competitors. Market analysts attribute this shift to investor rotation away from mega-cap technology dominance, as portfolio managers seek diversification opportunities in undervalued domestic equities with significant growth potential.

Summary auto-generated by AI from the original publisher's content. Editorial standards.