Why Small Caps Are Getting Crushed in June 2026

The Russell 2000 is down 1.3% in the last five trading days while the S&P 500 sits near all-time highs. Lucas and Luna unpack the macro forces squeezing small caps: persistent inflation, elevated Fed rates at 3.63%, and a widening profitability gap between large and small companies. They drill into the specific numbers — core CPI at 332.4, the 10-year breakeven inflation rate falling to 2.33% — and explain why this isn't just a risk-off rotation but a structural shift. Plus, they tie it to the recent BYD forecast on China EV adoption as a reminder that global trends ripple through market caps differently. If you own small-cap ETFs or are considering value plays, this episode gives you the framework to decide whether the pain is temporary or a signal to rebalance. #SmallCaps #Russell2000 #June2026 #StockMarket #Inflation #FederalReserve #InterestRates #S&P500 #ValueStocks #GrowthStocks #BYD #ChinaEV #MarketRotation #Investing #Finance #FexingoBusiness #BusinessPodcast #TheInvestingPodcast Keep every episode free: buymeacoffee.com/fexingo