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MarketWatch Top Storiesmarkets

Small-cap stocks are rallying, but here’s why Wells Fargo says its better to sell than buy

MarketWatch Top Stories
Thursday, May 28, 2026 at 10:32 AM
~4 min read
Equities

Original Report

The Russell 2000 is beating the S&P 500 this year, but that outperformance is masking a disturbing trend of falling earnings estimates

Glass House Analysis

Corporate decisions reverberate through local communities—a merger might mean headquarters relocating, a restructuring could eliminate jobs, and strategic shifts affect suppliers and service providers in countless towns. Behind quarterly earnings numbers are real employment decisions, investment choices, and community impacts that shape the economic landscape of regions across the country.

The implications extend beyond the immediate news cycle. Every economic development creates ripples that affect employment, prices, and opportunities in ways that may not be immediately visible but are deeply felt. By tracking these connections, we can better understand how the economy truly works—not as an abstract machine, but as a human system shaped by and shaping the lives of millions.

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Economic Context

S&P 500
+0.26%
Dow Jones
+0.23%
NASDAQ 100
-0.14%
Russell 2000
+0.29%