Small caps seen as a good bet if Democrats push for another stimulus, shares surging nearly 4%

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The Democrats are closing in on two Senate seats in Georgia, edging the party closer to control of the chamber. Investors are betting a possible Democratic majority means more stimulus is coming and small-cap stocks will benefit because they are seen as more reliant on the pace of the economy than bigger shares.

Shares of the Russell 2000 popped nearly 4% on Wednesday.

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