Wall Street has been experiencing a roller-coaster ride over the past few weeks as election uncertainty and lack of additional stimulus continue to weigh on investor sentiments. Against this backdrop, small caps are clearly outperforming. This is especially true, as the Russell 2000 Index has risen 11.4% over the past three months compared to gains of 6.9% for the S&P 500, 7.8% for the Nasdaq Composite Index and 7.3% for the Dow Jones (read: Biden or Trump, These 4 ETF Zones Are Set to Gain).
We have highlighted some solid reasons for their outperformance:
Most of the biotech and pharma firms have been racing to develop the COVID-19 vaccines or treatment. AstraZeneca Plc AZN and Moderna MRNA are leading the way with both in phase 3 clinical trials for their vaccine candidate. Pfizer PFE, in collaboration with BioNTech and Johnson & Johnson JNJ, has also entered the late-stage