CNBC
Small-cap stocks enjoy their best first half in 35 years. Here's what's driving it
Tuesday, June 30, 2026
Small-cap stocks gained 14.3 percent in the first half of 2024, their strongest performance for a six-month period since 1989, according to data from the Russell 2000 Index. This reversal follows a period in which small-cap stocks significantly trailed large-cap stocks. Investors cited lower inflation readings and expectations of Federal Reserve interest rate cuts as factors contributing to the rally. Technology and energy stocks within the small-cap category led gains during the period.