Small Caps Are Surging While Indexes Stall in June 2026

The S&P 500 and Nasdaq have been treading water since early June 2026, but the Russell 2000 small-cap index jumped 3.3% in the past five trading days. In this episode of US Economy with Fexingo, Lucas and Luna examine why small caps are rallying: a narrowing Treasury yield curve, cooling core inflation, and expectations that the Fed will hold rates steady. They drill into the 10-year Treasury yield falling to 4.48%, the 2-year note at 4.20%, and what that steepening spread means for smaller companies that rely on bank loans. They also note the jump in job openings to 7.6 million and what that says about the labor market. The hosts explore whether this rotation into small caps is a durable signal or a short-term bounce—and what it says about investor confidence in the broader economy. #SmallCaps #Russell2000 #TreasuryYield #YieldCurve #FedPolicy #MarketRotation #June2026 #USEconomy #Stocks #Investing #Economics #LaborMarket #JOLTS #CoreInflation #BondMarket #FexingoBusiness #BusinessPodcast #Finance Keep every episode free: buymeacoffee.com/fexingo