Bloomberg
Riskiest Stocks Lose Performance Edge as Interest Rates Climb
Tuesday, September 22, 2026
Small-cap stocks have underperformed large-cap stocks as interest rates increased in 2026. Investors had moved into small-cap equities earlier in the year to reduce exposure to artificial intelligence-focused investments concentrated in larger companies. Higher borrowing costs typically affect smaller companies more severely than larger ones due to their greater reliance on debt financing.
