Small-cap stocks are on a tear, eyeing their fifth consecutive day of gains on Tuesday. The iShares Russell 2000 ETF (NYSE:IWM) surged 1.9%, propelling the index to a cumulative gain of over 9% across the last five sessions. This remarkable streak represents the Russell 2000’s best five-day performance since June 2020. The turbocharged rise of small caps is attributed to the certainty at this point that the Federal Reserve will lower interest rates at its September meeting. In fact, the Russell 2000 rally kicked off last week, driven by June inflation data coming in below expectations, sparking traders’ speculation about rate cuts. According to the CME Group’s FedWatch Tool, fed futures now indicate a full 100% probability of an interest rate cut in nearly two months, marking the first reduction in borrowing costs since 2020. On Monday, Fed Chair Jerome Powell struck a dovish tone, acknowledging that recent inflation reports bolster confidence in returning to the 2% target, effectively hinting at forthcoming rate cuts. Read also: Worried About Market Volatility? Benzinga’s SmallCAP Event Has Answers Chart: Russell 2000 Notches Best 5-Day Upswing In Four Years Image: Benzinga Pro Investors Rotate From Tech To Small Caps Small caps’ heightened sensitivity to interest rate ...