Tech Stocks Stumble, Small Caps Jump As Rotation Gathers Pace

Investors swapped technology high-flyers for last year’s laggards on Thursday, resuming an intermittent rotation that has characterized US equity trading in early 2026.

The S&P 500 Index closed around the flatline in New York after setting a fresh record earlier this week, while the technology-heavy Nasdaq 100 Index fell 0.5%. By contrast, the old-economy Dow Jones Industrial Average jumped 0.6% and small capitalization shares rallied, with the Russell 2000 Index gaining 1.1%.