Investment Watch

The tortoise has caught the hare: Small-company stocks, as measured by the Russell 2,000 stock index, are up 4.8% on average this year, while the blue-chip Standard & Poor’s 500 index’s price gain has shrunk to 3.4%. Blue-chip stocks had roared out of the box early in the year, adding to last year’s big gains. But in recent weeks the S&P; stocks have been slammed, partly by worries that the strengthening U.S. dollar will hurt blue-chip multinationals’ earnings. Meanwhile, small-company stocks, which usually are more focused on the domestic economy, have been attracting more buyers as the U.S. economy continues to surprise Wall Street with its resilience.

Russell 2,000: +4.8%

S&P; 500: +3.4%