The start of a better seasonal month for the stock market and the Fed’s decision to continue maintaining the interest rates near-zero until next year should bode well for fundamentally sound small-cap stocks such as Tennant Company (TNC), Standex International (NYSE:), Donnelley Financial Solution (DFIN), and AdvanSix (NYSE:). Read more to learn why.The futures of the S&P 500 and the edged higher this morning, after a dip on Wednesday over concerns of the tech sector’s underperformance in a rising interest-rate environment. Significant job growth last month, a moderate drop in the unemployment rate, and Senate Majority Leader Chuck Schumer’s recent announcement that the chamber had reached a deal to avoid a government shutdown this week should give a boost to the stock market in the upcoming days. Small-cap stocks should be benefited by this announcement, as well as the continuation of low interest rates.

Many large-cap stocks, which have experienced a steady rally over the past months, are highly overvalued. Quality small-cap stocks should provide better returns if they are kept under the radar.

We think Tennant Company (TNC), Standex International Corporation (SXI), Donnelley Financial Solution Inc. (DFIN), and AdvanSix Inc . Given their market strength and expanding reach, (ASIX), could be solid bets.

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