Small Caps Surge as Russell 2000 Outpaces S&P 500 in 2026 Rotation
For more than a decade, the same story dominated U.S. equity markets: large-cap technology stocks, particularly the so-called Magnificent Seven, drove the bulk of S&P 500 returns while small caps lagged. In April 2026, that narrative cracked in a single month. The iShares Russell 2000 ETF (IWM) returned roughly 12.1% in April, while the SPDR…