The rally in small-cap stocks is set to continue after a bullish signal flashed for the first time since 2009, Fundstrat says. The Dallas Manufacturing Survey shows a sharp spread between current and forward expectations. Such spreads have historically preceded significant moves in small-cap stocks, Fundstrat's Tom Lee said. AdvertisementThe July rally in small-cap stocks is set to continue after a bullish signal flashed for the first time since 2009, according to Fundstrat's Tom Lee. Much of Lee's bullishness on small-cap stocks is based on compelling valuations, falling inflation, and the expectation of interest rate cuts later this year.

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Persons: Fundstrat, Tom Lee, —, Lee, you've Organizations: Dallas Manufacturing Survey, Service Locations: Dallas, Lee's