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The rise in small-cap stocks seen since the U.S. election last November appears to be running out of steam as a so called %TrumpBump begins to fade.

Shares of smaller U.S. companies have been under pressure, with the small-cap Russell 2000 index down 5% from a 52-week high it reached on Nov. 25 of last year.

At the same time, the benchmark S&P 500 index has gained 4% to start the year and closed at an all-time high on Jan. 22.

While Trump’s focus on boosting the domestic U.S. economy should, in theory, be good for small-cap stocks, the asset class has encountered some head winds in recent weeks.

One of the main issues weighing on small-cap stocks, defined as securities with market capitalizations of $10 billion U.S. or less, is the likelihood of higher interest rates.

Elevated rates increase borrowing costs that hit smaller companies particularly hard.

Trump’s tariff threats and the prospect of trade wars have raised concerns about a resumption of inflation, which in turn could lead the U.S. Federal Reserve to raise interest rates.

That would be bad news for the stock market in general, and small-cap stocks in particular.

While small caps were initially viewed as a “Trump Trade” last November, that opinion has now faded, say analysts.

The Russell 2000 index surged nearly 6% on the day after Trump's electoral victory on Nov. 5. By late November, the index had hit its highest closing level in three years.

But now, the Russell 2000 is flat since the U.S. election.

Rising Treasury yields are also pressuring small-cap stocks, with the benchmark 10-year yield recently hitting a 14-month high.

Smaller companies also tend to have greater debt loads than larger ones.

Still, despite the pullback, many analysts are holding out hope for a catch-up rally in small-cap stocks this year, noting that the S&P 500's nearly 50% gain over the past two years is more than double the gains seen in the Russell 2000 index.