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America's Smallest Stocks Are Staging a Comeback

Shares of small U.S. companies are racing higher, stirring a debate among investors about how much longer the stock market can keep rallying despite some of the grimmest economic news since the Great Depression.

The market’s rally over the past several weeks has stood in contrast to the economic data investors have gotten since the coronavirus pandemic erupted. Friday’s Labor Department report showed the U.S. economy shed a record 20.5 million jobs in April. Analysts warn the pain will likely last longer, even as some states…

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