Rising interest rates may dampen investors' move into small-cap stocks
Bloomberg reports that investors have flocked to small-cap stocks for much of 2026 to diversify away from the concentrated AI trade.
TLDR
Bloomberg reports that the riskiest stocks are losing their performance edge as interest rates climb. In its September 22 report, it says investors have flocked to small caps—smaller-company stocks—for most of 2026 to diversify away from the concentrated AI trade, but rising rates threaten to dampen that move.
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