Why Small Caps Are Surging While Big Tech Slows

The S&P 500 is up but the Russell 2000 is soaring. Lucas and Luna break down why small-cap stocks are outperforming large caps in May 2026 — and what it says about the US economy. With the Fed holding rates at 3.6%, a flattening yield curve, and consumer sentiment hitting a record low, the rotation into smaller companies might signal something bigger. They look at one driver: the AI economy's shift from infrastructure to application, and how that benefits agile firms. Plus, a concrete example of a small-cap industrial company riding the reshoring wave. No ticker-watching, just the structural story. #SmallCaps #Russell2000 #FederalReserve #InterestRates #YieldCurve #AIEconomy #Reshoring #IndustrialPolicy #USGDP #EconomicData #MarketRotation #ConsumerSentiment #BusinessCycle #PodcastEpisode #FexingoBusiness #BusinessPodcast #Economics #Investing Keep every episode free: buymeacoffee.com/fexingo