<div id="readability-page-1">Summer rally potential: Small caps have outperformed large caps recently, with the Russell 2000 up 31% over the past year versus 23% for the S&amp;P 500. Valuation advantage: Small caps remain undervalued, representing 4.6% of the Russell 3000 market cap compared to a historical 7.6% average. Fed policy boost: Expected gradual rate cuts under Kevin Warsh could disproportionately benefit small caps due to their higher floating-rate debt.</div>

SMDV

VTWO

<p>Analysts predict a strong summer for small-cap stocks, with the Russell 2000 up 31% over the past year compared to 23% for the S&P 500. Small caps are currently undervalued at 4.6% of the Russell 3000 market cap, below the historical average of 7.6%. Anticipated gradual rate cuts by the Fed could further benefit small caps due to their higher floating-rate debt.</p>

Direxion Small Cap Bull 3X

Pro Rsl 2000 Dvd Grw

VG S-Cp Value

ProShares Ultra Russell2000 ETF

iShares Russell 2000

Vanguard Russell 2000

S&P 500

Analysts see strong summer ahead for small-cap stocks