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Wednesday, February 5, 2025

Small-cap stocks are perking up. Here’s how to pick winners. 

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A mad rush for U.S. small-cap stocks over the past week has investors weighing whether to chase the rally or proceed with caution in one of the most speculative corners of the stock market. 

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The small-cap benchmark Russell 2000 index RUT — which measures the performance of 2,000 small and midsized companies included in the Russell 3000 index RUA — rose 11.5% over the five trading sessions ending Tuesday, marking its largest five-day percentage gain since April 2020. The advance also pushed the index to its highest level in…

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