Thinking Small

Detailed analysis below...

US stocks broadly advanced last week, led by the Russell 2000 Index of Small Caps, which rallied >6% (its best week since November 2023). 

The S&P 500 and Nasdaq finished with slight gains on the week, both underperforming the Russell 2000 by over 550bps respectively.

This was one of the worst relative performance weeks for Large Caps in 10+ years (up there with the Trump election Nov ’16, Covid lows in April ’20, and Vaccine Nov ’20…all pretty significant market events).