Short answer
Small caps usually rise when investors expect the Fed to cut rates, when the economy looks resilient, or when big-cap valuations look stretched.
Why are small-cap stocks rising?
What happened
The Russell 2000 outperformed the S&P 500 for several sessions.
Why it happened
Small companies carry more floating-rate debt, so they benefit disproportionately when rates fall. A soft-landing economy also helps their earnings.
Why investors care
Rotation into small caps often signals broader risk-on sentiment beyond mega-cap tech.
How it affects ordinary people
If you own a small-cap or total-market ETF, your balance benefits.
FAQ
What is the Russell 2000?
The main US small-cap stock index — 2,000 smaller companies below the S&P 500.
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