Category: Q2 2026

The Russell 2500™ Index returned 20.3% in the second quarter of 2026, as robust performance in the Information Technology sector combined with optimism regarding a potential resolution to the conflict in the Middle East.  The outlook for interest rates is moving in an increasingly hawkish direction, as employment levels have been resilient and inflation continues…

Small-cap equities staged a powerful recovery in the second quarter, more than reversing the first quarter’s conflict-driven weakness. Following the cease-fire that was announced after the market close on April 7, risk appetite returned in force and capital continued to concentrate in the AI build-out theme, where semiconductor, high-speed-connectivity, and data-center-infrastructure names posted extraordinary gains…

For 2Q, the Bank Sector Strategy returned 18.04% (gross of fees) and 17.74% (net of fees) vs. the Russell 2000® Value Index Bank Subsector benchmark of 16.17%.  Year-to-date, the Bank Sector Strategy returned 17.97% (gross of fees) and 17.39% (net of fees) vs. the Russell 2000® Value Index Bank Subsector benchmark of 20.67%.  Additional performance can…

Small-cap equities staged a powerful recovery in the second quarter, more than reversing the first quarter’s conflict-driven weakness. Following the cease-fire that was announced after the market close on April 7, risk appetite returned in force and capital continued to concentrate in the AI build-out theme, where semiconductor, high-speed-connectivity, and data-center-infrastructure names posted extraordinary gains…

The Russell 2500™ Index returned 20.3% in the second quarter of 2026, as robust performance in the Information Technology sector combined with optimism regarding a potential resolution to the conflict in the Middle East.  The outlook for interest rates is moving in an increasingly hawkish direction, as employment levels have been resilient and inflation continues…

The Market: U.S. small-cap equities rallied strongly in the second quarter. Oil prices declined as tensions with Iran eased, unwinding much of the first quarter’s spike and removing a key source of uncertainty for the growth outlook. Inflation continued to run above target, keeping pressure on the Federal Reserve, though falling energy prices offered some…

Market Review The second quarter of 2026 was a powerful risk-on rebound from first quarter, with the Russell Microcap® Index gaining 25.6% in the quarter. The rally was primarily driven by strength in artificial-intelligence and semiconductor companies. The macro backdrop stayed complicated: oil, which had spiked in early April as the Iran conflict disrupted supply through…

Market Review The second quarter of 2026 was a powerful risk-on rebound from the first quarter, with the Russell Microcap® Index gaining 25.6% in the quarter. The rally was primarily driven by strength in artificial-intelligence and semiconductor companies. The macro backdrop stayed complicated: oil, which had spiked in early April as the Iran conflict disrupted supply…

U.S. equity markets overcame significant geopolitical headwinds, an oil shock and persistent inflation and interest rate anxieties to deliver a remarkably resilient and robust performance during the first 6 months of 2026.  The S&P 500® composite increased 9.6% for the first 6 months of the year with a total return (including dividends) of 10.2%. Driving…

The Russell Midcap® Value Index (RMV) delivered strong returns in the second quarter of 2026, largely driven by optimism regarding a resolution to the hostilities in the Middle East and remarkably robust absolute performance in the Information Technology sector (up 58.7% in the quarter).  While Tech represented just 15% of the RMV Q2, the sector was…

Equity markets were robust during the 2nd quarter of 2026.  The Russell 2500™ Value (R25V) Index increased 18.50% and the Russell 2500™ Growth (R25G) Index increased 24.02%.  Small caps outperformed large caps, with the Russell 2000® Index up 22.49%, compared to the Russell 1000 Index® up 15.13%. Q2 SMID cap market performance was narrow, with index…

Equity markets were robust during the 2nd quarter of 2026.  The Russell 2000® Value (R2V) Index increased 17.19% and the Russell 2000® Growth (R2G) Index increased 25.71%.  Small caps outperformed large caps, with the Russell 2000® Index up 22.49%, compared to the Russell 1000® Index up 10.33%.  Q2 Small cap market performance was narrow, with index…