Top Small-Cap Stocks Leading The Market Rotation

2026-02-18 13:24:21 ET

Small Caps Power Rotation as Market Broadens Out

Small-cap stocks have outperformed the Nasdaq 100 ( QQQ ) by double digits in the past six months – their strongest run in five years during a rising market, as a rotation away from mega-tech stocks gathers steam. All Magnificent 7 stocks are down and underperforming the S&P 500 in 2026, as investors concerned with AI capex spending and stretched valuations are demanding greater selectivity ....

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