---
title: "Analysts see strong summer ahead for small-cap stocks"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/287005396.md"
description: "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."
datetime: "2026-05-20T04:33:18.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/287005396.md)
  - [en](https://longbridge.com/en/news/287005396.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/287005396.md)
---

# Analysts see strong summer ahead for small-cap stocks

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&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.

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- [TNA.US](https://longbridge.com/en/quote/TNA.US.md)
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- [.SPX.US](https://longbridge.com/en/quote/.SPX.US.md)

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