Small caps are poised to pull back on Wednesday after an epic five-day run. The iShares Russell 2000 ETF (IWM), which tracks the small cap benchmark, dipped 0.7% in premarket trading.

The Russell 2000 index had jumped five days in a row by more than 1%, only the fifth time since 1979 it it has ever done that, according to Bespoke Investment Group. During Tuesday’s session, the benchmark reached its highest level since January 2022.

Small caps took the baton from megacap technology shares last week to lead the bull market on hopes interest rate cuts will broaden out the economic recovery to their benefit.

The small-cap benchmark is up 12.8% over the last one month, triple the gains in the S&P 500.

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