Inflation Bets Give a Boost to Small-Cap Stocks

Small-cap stocks have leapt higher in recent days as investors bet on companies they hope can respond quickly to rising inflation.

The Russell 2000 index of smaller stocks has advanced 5% in November, outpacing the S&P 500 large-cap benchmark’s 1.7% gain. On Nov. 2, the Russell 2000 ended a seven-month drought with a record close and has since added three more.