The Fate Of Small Caps
From Macro-To-Micro Options Power Hour recorded on Jun 11, 2025
In this short clip from Macro-To-Micro Options Power Hour, recorded on Jun 11, 2025, Samantha LaDuc and Hans Albrecht discuss the surprising strength in small-cap stocks despite weak confirmation from interest rates and labor data.
They highlight that recent gains in small caps are largely driven by short covering, fiscal spending, and broad market liquidity, even though nearly half of the Russell 2000 companies are unprofitable.
Samantha emphasizes how the breadth in the market has improved from deeply oversold levels, supported by seasonal strength and mechanical buying flows, such as ETF rebalancing and corporate buybacks.
While mega-cap tech still leads the market, they caution that upcoming quarters could face pressure from rising jobless claims and potential earnings multiple contraction.
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