Small-cap stocks resurgence
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While Big Tech Gets the Headlines, Small-Caps Are Rallying. Will It Last?
Barrons· 2026-01-16 21:03
Core Insights - Tesla's Optimus robots are predicted to become the best surgeons on Earth by the end of the decade, showcasing the company's commitment to innovation in robotics and healthcare [1] - Walmart is collaborating with Alphabet to significantly expand its aerial drone delivery service from 2 million customers to 40 million next year, indicating a major shift in logistics and delivery capabilities [1] - The Walt Disney Company is rebranding its Rock 'n' Roller Coaster at Hollywood Studios to feature The Muppets, reflecting ongoing efforts to refresh and innovate its theme park attractions [1] - Small-cap stocks have been outperforming since mid-November, raising questions about whether this trend is a temporary fluctuation or the beginning of a sustained recovery [1]
Hot 2026 Start for This ETF Could Signal Durable Upside
Etftrends· 2026-01-16 15:02
Core Viewpoint - Small-cap stocks have started the year strongly, raising hopes for impressive performances in 2026, with the Invesco NASDAQ Future Gen 200 ETF (QQQS) showing a year-to-date increase of 7.16% [2][4]. Group 1: Market Trends - The January Effect may be influencing the bullish trend in small-cap stocks, as they often rally at the beginning of the year, potentially leading to broader market gains [2][3]. - Historically, small-cap benchmarks like the Russell 2000 and S&P Small Cap 600 have underperformed large-cap indexes, but there is optimism that this trend may reverse in 2026 due to lower interest rates and a resilient U.S. economy [5][6]. Group 2: Investment Opportunities - Small-cap stocks and ETFs like QQQS are currently attractively valued compared to large-cap peers, indicating potential for closing the valuation gap [6]. - Smaller stocks are expected to deliver superior earnings growth relative to large-caps this year, supporting a positive outlook for QQQS in 2026 [7]. - Additional interest rate reductions could benefit QQQS by lowering borrowing costs, particularly as some of its holdings are rumored acquisition targets [8].