Large Caps Rally to Record Highs While Small Caps Stagnate

The divergence between market tiers widened this week as the S&P 500 and Nasdaq Composite posted gains of 1.09% and 0.58% respectively. In contrast, the Russell 2000 retreated 1.01%, remaining pinned near its 200-day moving average. Technical indicators highlighted this split, with the small-cap index showing an RSI14 of 37.5, far below the 59 reading seen on the S&P 500, signaling a clear shift in investor sentiment toward established big-cap players.

Corporate activity remained robust across several sectors. Alimentation Couche-Tard moved to bolster its retail footprint by acquiring assets from Irving Oil in Quebec and Ontario. In the defense sector, RTX secured a $6.3 billion contract for the production of Standard Missile-3 Block IB interceptors, while SAP expanded its AI capabilities by acquiring the work intelligence platform TechWolf. Meanwhile, Canadian National Railway set a quarterly record by moving 7.94 million metric tonnes of grain, and Eli Lilly received FDA approval for Jaypirca as a first-line treatment for chronic lymphocytic leukemia.