{
  "id": 16994356,
  "title": "Small-Cap Stocks Just Did Something They Haven't Done Since 2018. Is It Finally Time to Buy?",
  "url": "https://urgent.news/2026/10/29/small-cap-stocks-just-did-something-they-havent-done-since-2018-is-it",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-29T02:15:00.000Z",
  "source": {
    "name": "Motley Fool",
    "slug": "motley-fool",
    "url": "https://www.fool.com/investing/2026/10/28/small-cap-stocks-did-something-finally-time-to-buy/?source=iedfolrf0000001"
  },
  "original_language": "en",
  "account": "The Russell 2000, a small-cap index, has gained 2% over the past week, marking its longest streak of consecutive weekly gains since 2018. This rise occurred during a week where both the S&P 500 and the Nasdaq 100 saw declines. Experts suggest that this divergence could be due to two factors: small-cap stocks tend to be more debt-heavy and may benefit from falling interest rates, and growing concerns about artificial intelligence financing, negative cash flows, and rising credit risks. The 10-year Treasury yield has recently dipped below 5%, indicating a potential \"flight to safety\" that favors small-caps due to their higher exposure to rate changes. Small-cap earnings are expected to grow more than 20% year-over-year, improving their valuation from a previously low 18 times earnings. However, the Fed may raise rates again by mid-2027, which could reverse small-cap gains if yields climb. The iShares Russell 2000 ETF is currently about 9% below its August high, making it a potential buy-the-dip candidate. Long-term investors may consider diversifying into small-caps, given their improved earnings outlook and better relative value, particularly if the current flight to safety trend continues.",
  "summary": "The rate-driven sell-off in the Russell 2000 creates a potential buying opportunity.",
  "key_points": [
    "Russell 2000 gained 2% in a week, longest streak since 2018.",
    "Small-caps may benefit from falling interest rates and AI financing concerns.",
    "iShares Russell 2000 ETF at 9% below August high, potential buy-the-dip."
  ],
  "editors_take": "This divergence suggests that falling interest rates and improved earnings outlooks are repositioning small-cap stocks as a viable hedge against the credit risks and financing concerns currently weighing on large-cap tech.",
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Nasdaq Markets",
        "title": "Small-Cap Stocks Just Did Something They Haven't Done Since 2018. Is It Finally Time to Buy?",
        "url": "https://urgent.news/2026/10/29/small-cap-stocks-just-did-something-they-havent-done-since-2018-is-it-16995472",
        "published": "2026-10-29T02:35:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}