Why Small Caps Are Surging While Inflation Lingers

Inflation and Your Money with Fexingo: Protecting Purchasing Power and Beating Inflation · May 27, 2026 · 8m · transcript

Episode 14 of Inflation and Your Money with Fexingo. Lucas and Luna explore why small-cap stocks are outperforming the S&P 500 so far in late May 2026, with the Russell 2000 up 6.3% in the past five days while the S&P 500 gained 2.3%. They tie this to sticky core CPI at 335.4, the Fed holding rates at 3.65%, and a surprising shift in investor sentiment toward domestic cyclical companies. The hosts discuss how small caps historically lead in late-cycle recoveries, why higher-for-longer rates might actually help smaller firms, and what the Russell 2000's recent surge means for your…