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

Traders work on the floor of the New York Stock Exchange.

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.