Recent analysis indicates that small-cap stocks have shown strong performance throughout the current bull market, leading to new all-time highs for major indexes. The internal strength among small-cap sectors has been noted as a significant factor in this trend. According to VettaFi’s research head, small-cap stocks are expected to gain more favor in 2025. Since the beginning of the fourth quarter, small and midcap stocks have outperformed the S&P 500 and NASDAQ, with expectations for this trend to continue, particularly for midcaps. Additionally, there has been a notable interest in low float, high short interest stocks within the small-cap category, suggesting a potential for short-term trading opportunities.