Despite mega-cap tech stocks setting new highs in July, small-cap equities have quietly begun a technical resurgence.
The Russell 2000 index closed at 2,211.65, down 0.9% today, reversing recent strength and broadening the small-cap underperformance trend.(turn0news23, turn0news20)
Mega-cap dominance is in full force—Meta and Microsoft delivered stellar results and continue to drive broader market sentiment. But beneath the surface, emerging value-driven small-cap names, especially in industrial and domestic sectors, may be positioning for a breakout once institutional capital reallocates.American Century Investmentsacquirersmultiple.comThe Royce Funds+2Schwab Brokerage+2Business Insider+2
The Russell 2000 Index is finally showing signs of serious momentum after months of relative underperformance.
U.S. equities surged on July 29, 2025, led by retail investors who helped drive the S&P 500 and Nasdaq to all-time highs. Meanwhile, the small-cap segment underperformed, despite explosive activity in select meme stocks that once again captured public attention.
work agreement helped defuse escalating tariff threats, reigniting investor optimism.