Small-cap stocks outperformed with Russell 2000 hitting record highs. U.S. economy expected to grow at 5.3% annual rate. Initial jobless claims low at 198,000.

Last week on Wall Street, the large-cap indexes remained steady while small-cap stocks saw a broadened rally, leading the Russell 2000 index to reach new record highs. This surge marked its longest streak of consecutive outperformance against the S&P 500 since 2008. The small-cap strength was supported by positive macroeconomic data, forecasting a remarkable 5.3% annual growth rate in the U.S. economy for the final quarter of 2025 as per the Atlanta Fed's GDPNow model. Furthermore, initial jobless claims totaled 198,000, falling below projections and marking the second-lowest level in two years, allaying concerns of a slowdown in the labor market. Analysts anticipate this unexpected economic acceleration to boost earnings for small and mid-cap companies, consequently prompting an upward adjustment in profit forecasts. For more details, refer to the latest article on Benzinga.com.