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US small-cap stocks have raced ahead of their bigger peers in 2021 Experts say a number of factors could send them higher

US small-cap stocks have raced ahead of their bigger peers in 2021. Experts say a number of factors could send them higher. hrobertson@businessinsider.com (Harry Robertson) © Seth Wenig/AP Small-cap stocks have outshined their bigger peers so far this year on Wall Street. Seth Wenig/AP US small-cap stocks suffered in the first COVID wave but are now powering ahead. The Russell 2000 index has jumped more than 10% in 2021 already. A number of factors, from stimulus to vaccines to tech regulation, could push them higher. The stock market recovery from the coronavirus crash in the spring of 2020 was all about the biggest US names: Amazon, Apple, Facebook, Google, and Netflix.

US small-cap stocks start 2021 in fine form as Russell 2000 jumps

Vaccines providing an injection of hope for institutional investors in 2021

Vaccines providing an injection of hope for institutional investors in 2021
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Economic forecasts haven t accelerated after good vaccine news That s puzzling, experts say

Economic forecasts haven’t accelerated after good vaccine news. That’s puzzling, experts say MarketWatch 12/10/2020 © Thomson Reuters Eikon Stock markets certainly have reacted to the good news on the rollout of a COVID-19 vaccine. The S&P 500 has gained about 6% since Pfizer first announced its vaccine was more than 90% successful in treating COVID-19, as has the MSCI World But that’s not the case for economic expectations. Philip Lawlor, head of global investment research for FTSE Russell, points out that global economic forecasts for next year haven’t changed very much. “It is highly unlikely that these forecasts are reflecting the scope of this pent up demand that could ratchet growth expectations being fed into 2021 forecasts, so I think they are yet to reflect the full vaccine impact,” he said in a presentation.

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