Why the Russell 2000 Is Outperforming in May 2026

Lucas and Luna examine the surprising strength of small-cap stocks in late May 2026, with the Russell 2000 rallying 3.6% over five days while large-cap indices lag. They dig into the drivers: falling interest rates, a weaker dollar, and rotation out of mega-cap tech. Lucas argues that value-oriented small caps are pricing in a soft landing, while Luna questions whether the move is sustainable given weak earnings growth. They discuss specific sectors like regional banks and industrials, and what history says about small-cap leadership during Fed pauses. A timely, data-anchored conversation for value investors looking beyond the S&P 500. #Russell2000 #SmallCapValue #SmallCapStocks #ValueInvesting #FexingoBusiness #BusinessPodcast #StockMarket #Investing #Finance #Rotation #FedPause #SoftLanding #RegionalBanks #Industrials #LucasAndLuna #May2026 #MarketLeadership #PortfolioStrategy Keep every episode free: buymeacoffee.com/fexingo