After months of mega-cap domination and AI-fueled exuberance, a quiet shift is taking shape across the broader markets—and small caps may finally be ready to take the lead.

For months, mega-cap tech and AI plays have dominated headlines and inflows. But as valuations stretch and investor appetite starts to recalibrate, capital is beginning to rotate—and early signs point to small-cap stocks staging a comeback.

Wall Street traded higher today, defying pressure from renewed trade war chatter. Despite former President Donald Trump’s strong rhetoric around reintroducing sweeping tariffs on Chinese imports if re-elected, the Dow Jones, S&P 500, and Nasdaq all closed in positive territory — showing resilience in the face of policy uncertainty.

Wall Street was rattled today after former President Donald Trump reiterated his plans to impose major new tariffs on Chinese goods if re-elected — a move that immediately sent shockwaves across the major indices.

Artificial Intelligence (AI) isn’t just for the tech giants anymore. A growing number of small cap companies are aggressively entering the AI space — and savvy investors are taking notice.

Markets kicked off Tuesday with a risk-on tone as TSX futures pushed higher, boosted by reports of a ceasefire agreement between Iran and Israel. The rally comes despite lingering geopolitical uncertainties, a dip in oil prices, and investor caution ahead of fresh inflation data and remarks from the U.S. Federal Reserve.