The S&P 500 and Russell 2000 set new highs in early 2026, indicating not only a rally-on condition but also a bullish outlook for the year. Small caps will be aided by a convergence of factors, including fiscal and monetary policy, deregulation, and resilient labor markets, all of which point to accelerating activity by year’s end.
This is a look at five of the hottest small-cap trades, as indicated by average daily volume, in the Russell 2000, what’s behind the activity, and where the stock prices are heading this year.
