Small Cap Informer

SmallCap Informer editor Doug Gerlach recently presented a one-hour Small-Cap Stock Clinic for the BetterInvesting Online Chapter. Here is the replay of the presentation.

After years of large-cap and mega-cap dominance (driven by the "Magnificent Seven"), small-caps are experiencing a strong resurgence. As of mid-2026, the S&P SmallCap 600 outperformed the S&P 500 over the trailing 12 months (~31.84% vs. 20.34%), highlighting a shift in market momentum.

Watch the replay here:

Small-Cap Investing & Stock Clinics with Doug Gerlach Featuring financial publishing veteran Doug Gerlach (founder and ed...

Market Recap for the Week Ending September 11, 2026:
Small Caps Retreat as Surging Oil Prices Revive Fed Hike Bets.

Here's SCI editor Doug Gerlach's take on key market events and trends for the week ending September 11, 2026.

U.S. stocks experienced choppy trading as investors worried about persistent inflation pressures, surging energy prices, and climbing bond yields. The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all posted modest weekly declines as investors positioned portfolios ahead of the upcoming Federal Open Market Committee meeting.

S&P SmallCap 600 Performance Dynamics

The S&P SmallCap 600 underperformed relative to the large-cap S&P 500 across the week. For the holiday-shortened week, small-caps faced downward pressure and shed roughly 1.8% compared to a milder 0.6% decline in the S&P 500.

On a year-to-date basis, the S&P SmallCap 600 is now lagging large caps, posting single-digit gains compared to the stronger double-digit performance of broader indices that have been driven up by technology and communication services. Over the trailing twelve months, however, the S&P SmallCap 600 continues to lead the S&P 500.

Economic Indicators and Market Moves

The U.S. Bureau of Labor Statistics released the August Producer Price Index and Consumer Price Index reports last week. The Producer Price Index increased 0.4% month-over-month, driven heavily by energy costs, bringing the annual increase to 5.4%. The Consumer Price Index also rose 0.4% month-over-month and 3.4% year-over-year, while core CPI gained 0.3% month-over-month.

West Texas Intermediate crude jumped above $100 per barrel due to shipping disruptions in the Red Sea and geopolitical friction, intensifying input cost pressures. The 10-year Treasury yield rose toward 4.96%, sending capital costs up across the economy.

The Energy sector advanced substantially as crude prices rallied, while rate-sensitive sectors—such as Utilities, Real Estate, and Materials—declined. Large-cap technology companies, including NVIDIA and IBM, registered losses mid-week under the weight of higher bond yields.

Investor Outlook: Near-Term and Long-Term

Regarding the near term, investors are focused on immediate interest-rate trajectories. According to the CME's FedWatch data, markets ended the week pricing in elevated odds of an additional quarter-point interest rate increase at the September FOMC meeting, prompted by sticky headline inflation. Near-term sentiment remains cautious as market participants assess whether persistent commodity inflation will prolong tight monetary policy.

Long term, investors are weighing the resilience of corporate earnings against higher capital costs. Attention is centered on balance-sheet durability, corporate pricing power, and the capacity of domestic businesses to sustain productivity growth in an environment where interest rates remain higher for longer. This is an environment where investors must remain disciplined and keep a careful eye on valuations in their portfolios.

In the SmallCap Informer

In the past 30 days, the top performers in our coverage list were....

Read more:
https://www.smallcapinformer.com/About/Blog/Small-Caps-Retreat-as-Surging-Oil-Prices-Revive-Fed-Hike-Bets-Market-Recap-for-the-Week-Ending-September/6260

The focus stock from our September 2026 issue is a real estate company with an attractive yield and high quality characteristics, with an above-market yield and potential for further capital appreciation. The company also scores exceptionally well in BetterInvesting's new RightStock framework!

Subscribe today to unlock this infill logistics powerhouse that's acquiring prime industrial real estate across land-constrained markets and is perfectly positioned for accelerating cash flow and compounding reliable small-cap dividend growth.
https://www.smallcapinformer.com/store/n_sci.aspx?level=online&promo=CHARTER&length=12

Here's editor Doug Gerlach's take on the week just ended.

Small-Caps Lead as Earnings Anchor Stock Gains: Market for Week Ending August 7, 2026

With the S&P SmallCap 600 doubling large-cap YTD returns and corporate earnings growth surging, investors weigh near-term Fed policy against long-term AI expenditures.

For the week, U.S. equities secured a second consecutive weekly gain. The S&P 500 traded near 7,700, driven by a combination of resilient corporate earnings and economic data that reinforced current expectations about monetary policy. Read more:
https://www.smallcapinformer.com/About/Blog/SmallCaps-Lead-as-Earnings-Anchor-Stock-Gains-Market-for-Week-Ending-August/6241

Small-Caps Remain in Front of Broadening Large-Cap Rally:
Market Review for Week Ending July 31, 2026
by Doug Gerlach, Editor-in-Chief, SmallCap Informer

Robust quarterly results and steady consumer demand reinforce long-term confidence in small-cap growth.

July ended with a busy week of corporate earnings, economic releases, and a Federal Reserve policy decision. Investors were forced to evaluate cooling inflation metrics alongside steady economic growth data while navigating a rotation between technology and cyclical sectors.

S&P SmallCap 600 vs. the Broader Market

Small-cap equities maintained strong relative performance against broader market benchmarks through the end of July. The S&P SmallCap 600 index recorded a gain of 6.04% for the month of July, outpacing broader market benchmarks as capital continued to flow into domestic, valuation-discounted equities.

For the year to date, the S&P SmallCap 600 Index advanced 13.4% YTD, continuing its multi-month momentum relative to large-caps. Over the past 52 weeks, the S&P SmallCap 600 logged an impressive 30.1% gain, supported by earnings growth acceleration and reshoring trends across domestic small-cap constituents.

Macroeconomic Indicators and Fed News

In headline economic news, the Federal Open Market Committee voted 9–3 to maintain the target range for the federal funds rate at 3.50% to 3.75%. Three members dissented in favor of a 25-basis-point increase. In his press conference, Fed Chair Kevin Warsh noted the economy’s "impressive resilience," highlighted strong business investment, and reiterated the central bank's singular 2% inflation objective.

The June Personal Consumption Expenditures (PCE) price index showed headline inflation easing 0.1% month-over-month, while core PCE rose 0.2%. Second-quarter U.S. GDP expanded at an annualized rate of 2.1%, signaling continued consumer spending resilience.

Market Movers and Sector Performance

Corporate earnings reports drove significant volatility across sectors for many individual stocks.

Nebius Group surged 27.13% ahead of Q2 earnings, and Bloom Energy jumped 26.49% after exceeding earnings expectations and raising full-year 2026 guidance. Sandisk rose 25.99%. MarketAxess Holdings (MKTX) gained 38.5% after the announcement that Intercontinental Exchange (ICE) would be acquiring the company.

On the downside, Alnylam Pharmaceuticals fell 28.31% following lower 2026 revenue guidance, Fair Isaac dropped 17.01% on mixed Q3 results, and Tradeweb Markets declined 9.60%.

Near-Term and Long-Term Investor Outlook

Current market conditions provide rather clear indications of investor positioning. Many eyes are focused on Q2 earnings ex*****on, verifying whether cooling PCE inflation will allow the Fed to keep rate conditions steady, and tracking incoming ISM manufacturing PMI data.

Longer term, the question remains whether earnings expansion will continue beyond mega-cap tech. The durability of corporate capital expenditures is also still up in the air.

The shift toward fundamentally sound cyclical, industrial, and small-cap equities still has legs, and while there are no guarantees, the run-up could last for some time.

In the SmallCap Informer

The biggest movers of the week from our SmallCap Informer coverage list were....

Read more:
https://www.smallcapinformer.com/About/Blog/SmallCaps-Remain-in-Front-of-Broadening-LargeCap-Rally-Market-Review-for-Week-Ending-July/6234

Tech Stays in the Backseat as Market Leadership Deepens: Market Review for Week Ending July 3, 2026 from SCI editor Doug Gerlach:

The holiday-shortened week reveals continued stark polarization as investors lock in AI profits before they retreat. The U.S. stock market delivered a mixed and volatile performance during the holiday-shortened week ending July 2, 2026 (with markets closed Friday, July 3, in observance of Independence Day). Wall Street navigated the still-present divergence between mega-cap technology companies and the rest of the market. While the broad-market S&P 500 rose 1.8% to finish the trading week at 7,483.24, this gain masked extensive churn under the surface, as artificial intelligence (AI) winners faced heavy profit-taking.

Small-Caps vs. The Broader Market

The core narrative characterizing mid-2026 continues to be the leadership shift toward small-cap equities. Although the S&P SmallCap 600 consolidated slightly this week, sliding to 1,781.90 (mirroring a 0.5% weekly decline in the Russell 2000), its multi-month and yearly outperformance relative to large-cap indexes remains firm.

Through the first half of 2026, small-cap stocks have comfortably led the broader market. While the S&P 500 has advanced 9.3% YTD, the small-cap segment has retained the bulk of its substantial double-digit lead, building on the ~18% gain established in late June.

Over the past 52 weeks, small-caps boast a robust track record. The S&P SmallCap 600 sits firmly on a massive one-year gain greater than 30%, vastly outperforming large-caps. This continues to be underpinned by.... Read more:
https://www.smallcapinformer.com/About/Blog/Tech-Takes-a-Backseat-as-Market-Leadership-Deepens-Market-Review-for-Week-Ending-July/6220

Tech Giants Stumble While the Little Guys Soar: Weekly Market Overview for the Week Ending June 26, 2026

Inside the massive market rotation that's pushing the S&P SmallCap 600 past large-caps.

The U.S. stock market experienced a notable dynamic during the week ending June 26, 2026. While large-cap benchmarks showed signs of fatigue due to a cooling artificial intelligence (AI) trade, small-cap equities again surged, extending a strong cyclical rotation. For the week, the S&P 500 slipped about 0.1%, closing out only its second losing week in the past 13, heavily weighted down by mega-cap technology and semiconductor pullbacks.

For us, the core narrative of the week was the persistent outperformance of small-caps relative to the broader market. The S&P SmallCap 600 Index rose steadily to finish the week at 1,797.26, marking a strong gain over the week. Read more....
https://www.smallcapinformer.com/About/Blog/Tech-Giants-Stumble-While-the-Little-Guys-Soar-Weekly-Market-Overview-for-the-Week-Ending-June/6212

Here's SmallCap Informer editor Doug Gerlach's 6-minute overview of the trading week that just ended. Remember that markets are closed on Friday, June 19, 2026 in recognition of the Juneteenth federal holiday.

Small-Caps Reach All-Time Highs: Weekly Market Overview for the Week Ending June 19, 2026

Plunging oil prices and a tech rebound lift large-caps, while the S&P SmallCap 600 reached historic highs.

U.S. equity markets experienced a dramatic, event-driven trading week cut short by the Juneteenth federal holiday observation on Friday, June 19. Driven by a geopolitical breakthrough and extreme volatility surrounding the recent SpaceX IPO, major indexes marched higher. By the close of trading on Thursday, June 18, the S&P 500 rose 1.08% to finish at 7,500.58, while the tech-heavy Nasdaq Composite led the pack, advancing 1.91% to 26,517.93.

But he big news for small-cap stock investors is the all-time high of 1,745.26 reached by the S&P SmallCap 600 Index on June 15, 2026. Though the index closed the shortened week at 1,744.11, down ever so slightly by 0.03% from the prior week's close of 1,744.69, small-caps still maintained their robust recent trading range.

Comparing the S&P SmallCap 600 to the mega-cap-dominated indexes reveals a significant shift. Year-to-date, small-cap indexes have noticeably outperformed the S&P 500 by a wide margin through the first half of 2026. Lowering energy costs and a shift toward risk-on, cyclical allocations rapidly closed the valuation gap.

Read more: https://www.smallcapinformer.com/About/Blog/SmallCaps-Reach-AllTime-Highs-Weekly-Market-Overview-for-the-Week-Ending-June/6209

Small-Caps Surge as Tech Giants Shed $2 Trillion: Weekly Market Review Ending June 12, 2026 from SmallCap Informer editor Doug Gerlach.

While the Magnificent Seven faced a steep pullback, the S&P SmallCap 600 gained momentum alongside the historic SpaceX IPO.

The week ending June 12, 2026, marked a pivotal and highly active stretch for U.S. equity markets. While the headline indexes rallied by the end of the week, a dramatic structural shift unfolded beneath the surface. Major potential geopolitical relief, a surge in small-cap stocks, and the historic public debut of Elon Musk's SpaceX contrasted sharply with heavy profit-taking among the market’s tech giants.

The broader market logged overall gains by Friday's close, heavily aided by a sharp late-week rebound. On Wednesday alone, major indexes posted their best single-day gains since early April, with the S&P 500 advancing 1.8% to close the week at 7,393.30 and the tech-heavy Nasdaq Composite rising 2.5% to 25,809.66.

However, another defining characteristic of the week was...

Read more:
https://www.smallcapinformer.com/About/Blog/SmallCaps-Surge-as-Tech-Giants-Shed-Trillion-Weekly-Market-Review-Ending-June/6207

Sell-Off Snaps S&P 500 Streak: Friday's sharp technology rout ended a historic weekly winning streak for equities.

Here's the market Update from SmallCap Informer editor Doug Gerlach for the week ending June 6, 2026

The U.S. stock market experienced sharp downward momentum in the week ending June 5, 2026. A massive Friday sell-off ended the S&P 500’s bid for its 10th consecutive weekly gain, a streak last seen in 1985. The S&P 500 slumped 2.6% on Friday alone, marking its worst single-day performance since October.

The primary catalyst for the pivot was May’s nonfarm payrolls report. Job openings hit their highest level in April in nearly two years while hiring fell sharply. Available employment hit 7.6 million for the month, surging 731,000 from the March and the highest level since May 2024. While job demand is rising, hiring is also slow, keeping the unemployment rate unbudged at 4.3%. The low-hire, low-fire environment that has characterized the labor market since early 2025 remains...

Read more:
https://www.smallcapinformer.com/About/Blog/SellOff-Snaps-SP-Streak-Weekly-Market-Review-Ending-June/6187