Small Caps Are Leading This Rally and Heres Why

Bull Market Conversations with Fexingo: Rallies, Momentum, and Riding Market Strength · May 22, 2026 · 8m · transcript

The Russell 2000 is up 1.8 percent over the past five days while the S&P 500 has gained just 0.5 percent. Lucas and Luna drill into the small-cap resurgence: what's driving it, why it matters for portfolio construction, and whether it has legs. They look at the macro backdrop — steady Fed funds at 3.62 percent, real GDP growth at 2 percent — and argue that a rate-sensitive, domestically focused cohort is finally getting its turn. They also unpack the Ark Innovation ETF's 2.3 percent five-day gain as a canary for risk appetite. No generic 'small caps are cheap' claims here…