Will Falling Bond Yields Send These 2 Small Caps Soaring?

From Nasdaq
February 13, 2025 7:45 AM:

President Trump’s recent trade tariff announcements caused global stock market volatility. The iShares 20+ Year Treasury Bond ETF saw upside as bond prices rose, inversely affecting yields. Small-cap stocks, like Plug Power Inc. and Riot Platforms Inc., outperformed during S&P 500 selloffs, with institutional capital of $6.4 billion flowing into the iShares Russell 2000 ETF.

Small-cap ETFs outperformed the S&P 500 during tariff announcements, showing their resilience in volatile markets. As bond yields decrease, small caps benefit from improved business conditions. $6.4 billion in institutional capital has entered the small-cap ETF in the past quarter, signaling continued confidence in the sector for 2025.

Plug Power stock may rise due to increased oil demand driving interest in alternative energy sources. Analysts predict a 130.7% upside for the small-cap energy stock, aligning with a bullish outlook on oil. Warren Buffett’s investment in Occidental Petroleum Co. supports the energy sector’s prospects.

Riot Platforms Inc., a Bitcoin farming company, could see a 50% upside with a $17.55 price target. Lower bond yields might boost Bitcoin prices, benefiting Riot stock. Wall Street analysts foresee potential growth for the company as Bitcoin continues to gain value.

Read more at Nasdaq: Will Falling Bond Yields Send These 2 Small Caps Soaring?