Rising Bond Yields Drive Small-Cap Correction, Homrich & Berg Says

PUBT · 1d ago
Rising Bond Yields Drive Small-Cap Correction, Homrich & Berg Says
  • Homrich & Berg’s October 22, 2026, analysis linked the Russell 2000’s correction of more than 10% to rapidly rising bond yields.
  • Stabilizing yields could support a small-cap recovery; profitable stocks fell 6% since mid-August, versus a 15.2% decline for unprofitable companies.
  • Small-cap forward price-to-sales valuations stood 1.5 standard deviations below their average relative to the S&P 500 since 2001.
  • Expected Russell 2000 revenue growth averaged 7.2%, compared with the long-term average of 3.8% since 2013.
  • Utilities, industrials and real estate offered the cheapest valuations among predominantly profitable sectors, though utilities and real estate remain particularly rate-sensitive.


Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Homrich & Berg Inc published the original content used to generate this news brief on October 22, 2026, and is solely responsible for the information contained therein.