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Investors Return Home as Small Caps Lead the Way

Investors are gobbling up the shares of small U.S. companies, a sign of how they're retreating from some overseas markets. The Russell 2000 index of small cap stocks has climbed for six straight weeks, rising 7.5% during that time, the longest such streak since 2016. Investors are gravitating toward small cap companies, which tend to operate largely in the U.S., at a time when the outlook in foreign markets is looking murkier.