Latest / Bull Market Conversations with Fexingo: Rallies, Momentum, and Riding Market Strength
Why the Bull Market Is Ignoring the Russell 2000
The S&P 500 is up 11% year-to-date in 2026, but small-cap stocks in the Russell 2000 have barely budged. Lucas and Luna dig into why the bull market is leaving small caps behind — from the Fed's higher-for-longer rate stance to a rotation into mega-cap tech. They break down the mechanics: small caps carry more floating-rate debt, their earnings are more domestic and rate-sensitive, and passive flows overwhelmingly favor the S&P 500. They also look at the one corner of small caps that is working — cybersecurity — and ask whether this divergence is a warning signal or a catch-up trade…
The skinny
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