Small-Caps Lead US Stock Market as Federal Reserve Decision Looms
The US stock market closed on Friday, July 26, as small-cap stocks continued their rally. The Russell 2000 index rose 18.1% in 2026, outperforming the Nasdaq by a significant margin of 10.6 percentage points.
Last week saw declines in major indices: the Nasdaq dropped 2.1%, the S&P 500 slipped 0.6%, and the Dow was down 0.4%. The Russell 2000, however, bucked this trend with a gain.
The week ahead promises to be pivotal, with the Federal Reserve's decision on interest rates due on Wednesday and major tech companies releasing earnings between Wednesday and Thursday. Four large-cap tech firms, Microsoft, Meta Platforms, Amazon.com, and Apple, will report their results during this time.