BofA, UBS Latest to Join Push for Small-Cap Outperformance (1)

Small caps were already riding the wave of a recent rotation out of Big Tech and into lagging parts of the market. Then came dovish remarks from the Federal Reserve Chair on Friday, which likely provided more room to the rebound.

Such is the view of strategists at Bank of America Corp. and UBS Group AG, who cited optimism over Jerome Powell’s Jackson Hole remarks that signaled an interest-rate cut is coming as soon as next month. “In the absence of major tariff news or other macro surprises, we think the Russell 2000 likely leads large caps in the ...