The Small-Cap Rally That Says Recession Isn't Coming

The S&P 500 is up 2.1% in a week, but the Russell 2000 has surged 6% — the biggest small-cap outperformance since early 2025. Lucas and Luna unpack what this divergence means for recession models. With consumer sentiment at a record low and the yield curve barely positive, why are risk assets rotating into the most economically sensitive names? The hosts drill into the mechanics of a 'risk-on' signal: small-cap earnings leverage to a potential GDP acceleration, the role of Fed rate-cut expectations, and why this rally might be saying the economy is stronger than the pessimists think. Plus: why the VIX at 17.15 hasn't budged despite the war headlines. A fresh, data-driven take on a market signal that contradicts every recession narrative of 2026. #Russell2000 #SmallCaps #RecessionWatch #StockMarket #GDPGrowth #FederalReserve #VIX #RiskOn #YieldCurve #EarningsSeason #EconomicIndicators #MarketRotation #Investing #FexingoBusiness #BusinessPodcast #Economics #Finance #Trading Keep every episode free: buymeacoffee.com/fexingo