How to Read the Russell 2000 Small-Cap Divergence

The Russell 2000 is down 2.3% in five days while the S&P 500 barely budges. Lucas and Luna dig into why this small-cap selloff matters more than headline numbers suggest. They look at the yield curve steepening to 42 basis points, the VIX jumping 44% to 22.22, and what history says about a market where large caps hide small-cap pain. The hosts walk through how small caps behave differently when the Fed is on hold, why the Russell 2000's composition makes it a leading indicator for economic uncertainty, and one concrete signal to watch before buying the dip. No hot takes — just the data and a framework for thinking about divergence trades in 2026. #Russell2000 #SmallCaps #MarketDivergence #YieldCurve #VIX #StockMarket #Investing #BearMarket #FexingoBusiness #BusinessPodcast #Finance #SmallCapStocks #EconomicIndicators #FederalReserve #DipBuying #RiskManagement #PortfolioStrategy #MarketAnalysis Keep every episode free: buymeacoffee.com/fexingo