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Benzinga
Benzinga
Business
Piero Cingari

5 Reasons Why Small Cap Stocks Are Set To Soar In 2026: Bank Of America

Bank of America US Federal Reserve
wall street ai17

Small caps are poised to finish 2025 with a fifth consecutive year of trailing large caps, yet Bank of America says conditions are aligning for a long-awaited reversal in 2026.

According to Bank of America, the long-neglected small-cap stocks are set up to be the market’s surprise winners in 2026, supported by Fed cuts, M&A momentum, and a U.S. capex revival as key catalysts.

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