EPISODE · May 25, 2026 · 6 MIN
Why the Russell 2000 Is Beating the S&P 500 by 2-to-1
from The Investing Podcast with Fexingo: Stocks, Bonds, and Building a Long-Term Portfolio · host Fexingo
Small-cap stocks are smashing large caps in May 2026, with the Russell 2000 up 3.4% in the past week versus the S&P 500's 1.0%. Lucas and Luna dig into the forces behind the rotation: a flat Fed funds rate at 3.62%, sticky but slowing inflation as measured by core PCE at 129.3, and a valuation gap that hasn't been this wide in a decade. They zoom in on Bank of America, which gained 2.2% this week as regional lenders benefit from the steepening yield curve, and Pfizer, up 2.3% as investors hunt for defensive value in a late-cycle economy. The hosts also weigh the risks—Huawei's chip push and US-China trade tensions—and ask whether this small-cap rally has legs or is just a sugar high. Specific, data-driven, and grounded in the May 25, 2026 market close. #Russell2000 #SmallCaps #SP500 #StockMarket #Investing #ValueStocks #BankOfAmerica #Pfizer #Fed #Inflation #PCE #YieldCurve #PortfolioStrategy #Rotation #FexingoBusiness #BusinessPodcast #Finance #LongTermInvesting Keep every episode free: buymeacoffee.com/fexingo
What this episode covers
Small-cap stocks are smashing large caps in May 2026, with the Russell 2000 up 3.4% in the past week versus the S&P 500's 1.0%. Lucas and Luna dig into the forces behind the rotation: a flat Fed funds rate at 3.62%, sticky but slowing inflation as measured by core PCE at 129.3, and a valuation gap that hasn't been this wide in a decade. They zoom in on Bank of America, which gained 2.2% this week as regional lenders benefit from the steepening yield curve, and Pfizer, up 2.3% as investors hunt for defensive value in a late-cycle economy. The hosts also weigh the risks—Huawei's chip push and US-China trade tensions—and ask whether this small-cap rally has legs or is just a sugar high. Specific, data-driven, and grounded in the May 25, 2026 market close. #Russell2000 #SmallCaps #SP500 #StockMarket #Investing #ValueStocks #BankOfAmerica #Pfizer #Fed #Inflation #PCE #YieldCurve #PortfolioStrategy #Rotation #FexingoBusiness #BusinessPodcast #Finance #LongTermInvesting Keep every episode free: buymeacoffee.com/fexingo
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Why the Russell 2000 Is Beating the S&P 500 by 2-to-1
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