By Vicky Ge Huang
Small-cap stocks are on a tear to kick off 2026.
The Russell 2000 index of small-cap companies is on track to outperform the S&P 500 for the 11th day in a row. That would mark its longest winning streak against the S&P since 2008, according to Dow Jones Market Data.
Investors say the index's outperformance is driven by an ongoing "rotation trade" from growth and tech stocks into shares of more economically-sensitive companies. Still, the durability of small-cap gains depends on a favorable interest-rate environment and stable economic growth, they say.
This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).
(END) Dow Jones Newswires
January 16, 2026 13:19 ET (18:19 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments