Investors are increasingly bullish on small-cap stocks, driven by optimistic projections for the interest-rate-sensitive segment of the market to thrive as the market approaches the onset of a Federal Reserve rate cut cycle. July has been a pivotal month, as small caps significantly outperformed large caps, especially in the tech sector, which dominated during the nearly two-year bull market. The Russell 2000 index has surged nearly 9% month-to-date compared to a 3.6% decline for the tech-heavy Nasdaq 100 as of July 25. The performance gap of nearly 13 percentage points in favor of the Russell 2000 over tech marks the best month for the “long small cap, short tech” trade since April 2002, highlighting the strength and speed of the ongoing market rotation. Chart: It’s The Best Month In Over 2 Decades For The ‘Long Russell 2000, Short Nasdaq 100’ Trade Strong Inflows Into Small-Cap ETFs The impressive performance of small-cap stocks has been mirrored ...