Small caps soar, putting them on track for record highs
Small stocks soared Monday, putting key small-cap indexes on track to close at record highs.
The sharp drop in interest rates tied to the Trump administration’s selection of a billionaire hedge-fund manager to mind the Treasury Department seems to be playing a role. (Financing costs tend to eat up a larger share of revenues for smaller companies.)
But that’s about all there is in terms of broad fundamentals. Beyond that, it feels like there’s more than a bit of speculative excitement at play, with several small-cap favorites of retail traders like MARA Holdings posting big gains, and short-sellers betting big against companies like Wolfspeed, Hertz Global, and Hims & Hers finding themselves at the wrong end of a squeeze.
But that’s about all there is in terms of broad fundamentals. Beyond that, it feels like there’s more than a bit of speculative excitement at play, with several small-cap favorites of retail traders like MARA Holdings posting big gains, and short-sellers betting big against companies like Wolfspeed, Hertz Global, and Hims & Hers finding themselves at the wrong end of a squeeze.
