The Tech Stock Rally Leaves Small Caps In The Dust

Large-cap stocks are currently outpacing their smaller counterparts, showcasing a notable performance disparity. According to Dow Jones Market Data, the Russell 1000 index, representing large companies, has surged 9.2% this year, significantly surpassing the modest 0.7% gain of the small-cap concentrated Russell 2000. This year's outperformance is the widest since 1997, examining years in which the Russell 1000 remained in positive territory through May 26.
The impressive gains in the large-cap index can be largely attributed to a handful of prominent technology stocks. $Meta Platforms(META.US)$ and graphics chip maker $NVIDIA(NVDA.US)$ have both witnessed their value more than double in 2023. Additionally, $Tesla(TSLA.US)$ has seen a remarkable increase of 57%, while $Apple(AAPL.US)$ has climbed 35%.
On the other hand, the small-cap index has encountered pressure, partially driven by substantial declines in regional bank stocks. $Valley National Bancorp(VLY.US)$ has experienced a decline of 32%, while $Independent Bank(INDB.US)$ (Massachusetts) has dropped by 46%. Moreover, the academic learning platform $Chegg(CHGG.US)$ has suffered a 1.29% decrease, and oil-and-gas-drilling company $Helmerich & Payne(HP.US)$ has fallen 34%.