The Russell 2000, which tracks shares of small- and mid-cap companies, outperformed the broader U.S. market benchmark, the S&amp;P 500, for a ninth consecutive session on Wednesday, January 14. That marks the index’s longest winning streak against large caps in 25 years, Bloomberg <a href="https://www.bloomberg.com/news/articles/2026-01-13/stock-market-today-dow-s-p-live-updates?srnd=homepage-europe&amp;sref=Y0jVLcFo">reports</a>. The move reflects growing investor skepticism over the durability of artificial intelligence-driven gains, resulting in capital rotation.

Russell 2000 beats S&P 500 for ninth straight time, now the longest streak since 1990

Contango Ore, Inc.

Dolly Varden Silver Corporation

Gold exploration and production company Contango ORE and silver miner Dolly Varden Silver <a href="https://www.contangoore.com/press-release/contango-ore-and-dolly-varden-silver-announce-merger-to-create-a-new-north-american-high-grade-mid-tier-silver-gold-producer-and-developer">announced</a>&nbsp;a merger in late December. The transaction will combine their assets in Alaska and British Columbia. Below is a summary of what investors need to know about the deal, the outlook for the combined company, and its key projects.

Gold and silver combine: Breaking down the Contango ORE/Dolly Varden merger

Sun Country Airlines Holdings, Inc.

Allegiant Travel Company

Shares of <a href="https://finance.yahoo.com/quote/SNCY/">small-cap airline Sun Country</a> jumped almost 11% on Monday, January 12, to their highest level since mid-2023, after the carrier agreed to a <a href="https://ir.allegiantair.com/news/news-details/2026/Allegiant-and-Sun-Country-Airlines-to-Combine-Creating-a-Leading-More-Competitive-Leisure-Focused-U-S--Airline/default.aspx">combination</a>&nbsp;with rival Allegiant Air. The transaction is set to reshape the U.S. low-cost airline market, creating the second largest ultra-low-cost carrier behind Spirit Airlines, Forbes <a href="https://www.forbes.com/sites/suzannerowankelleher/2026/01/12/allegiant-air-merger-sun-country/">wrote</a>.

Sun Country Airlines soars on news of combination with Allegiant

The Russell 2000 index, which tracks small-cap stocks, set a new all-time high on Monday, January 12, and outperformed the S&amp;P 500 for a seventh straight session, marking its longest winning streak since 2019, Bloomberg <a href="https://www.bloomberg.com/news/articles/2026-01-12/small-cap-stocks-post-longest-win-streak-over-s-p-500-since-2019?embedded-checkout=true">wrote</a>. Barron’s <a href="https://www.barrons.com/articles/small-company-stocks-rally-1f64499a?gaa_at=eafs&amp;gaa_n=AWEtsqdEPhgBONFBOXARir0fRH7GxP3k5tzb2sppbPhcClif-MQfCC6EJSWD&amp;gaa_ts=69660c2c&amp;gaa_sig=qz3nYRW4R1IaY0veJi0n4pshyZJahGzpPHKuXIm65XNvjhv5EtwaMl16XEXnzRDcq6vCgglLur4XZSc3jS9PpA%3D%3D">attributed</a>&nbsp;the move in part to the so-called January effect, while analysts and money managers say the rally could have further to run.

Russell 2000 extends longest winning streak vs S&P 500 since 2019

NovaBay Pharmaceuticals, Inc.

The Oncology Institute, Inc.

Relmada Therapeutics, Inc.

Palvella Therapeutics, Inc.

Avino Silver & Gold Mines Ltd.

In 2025, small-cap stocks generally lagged their large-cap peers. While the <a href="https://finance.yahoo.com/quote/%5EGSPC/">S&amp;P 500</a>&nbsp;index rose 16.6% over the year, the <a href="https://finance.yahoo.com/quote/%5ERUT/">Russell 2000</a>, which tracks smaller companies, gained 11.1%. Some small caps, however, delivered explosive returns, with share prices rising more than 600%, notes Freedom Broker, whose screen covered companies with market capitalizations between $300 million and $2 billion.

600% and above: Freedom spotlights five small caps with super-high returns in 2025

Rigetti Computing, Inc.

Nebius Group N.V.

AST SpaceMobile, Inc.

However, analyst Sean Williams cautions, 'there's more to a great investment than jaw-dropping revenue growth'


Motley Fool highlights three growth stocks with triple-digit expected sales in 2026

The Russell 2000, which tracks the performance of small and mid-cap stocks, reached a new all-time high on Thursday, January 8. Analysts view the move as an important signal for economic growth and see favorable prospects for smaller companies.

Russell 2000 hits another all-time high in 'broadening out of the market'

NioCorp Developments Ltd.

Shares of NioCorp Developments, which is engaged in exploration and development of mineral deposits in North America, have the potential to rise about 35%, Freedom Capital Markets analyst&nbsp;Vitaly Kononov argued in a recent initiation report on the company. He attributes the upside to long-term demand for critical minerals in the U.S. and progress at NioCorp’s flagship project, which is moving into the construction phase.

Freedom initiates on U.S. rare-earth miner NioCorp, sees 35% upside

Frontier Developments plc

Ubisoft Entertainment SA

Remedy Entertainment Oyj

Video games remain one of the fastest growing categories in the entertainment industry. According to Bloomberg Intelligence estimates, total global sales of gaming companies exceeded $183 billion in 2024. Analysts expect the upward trend to continue amid structural technological shifts, including the development of cloud gaming, the use of AI tools in game development, and the emergence of new gaming platforms.

How to make money on small caps in the gaming sector

Vertical Aerospace Ltd.

Archer Aviation Inc.

In a coverage initiation report, William Blair <a href="https://www.williamblair.com/News/Vertical-Aerospace-Ltd-Initiation">says</a>&nbsp;investors should buy shares of UK air taxi developer Vertical Aerospace, which has a <a href="https://www.marketscreener.com/news/william-blair-initiates-vertical-aerospace-at-outperform-ce7e59dcdd89f220">market capitalization</a> of about $622 million. The company has one of the largest disclosed order books in the industry, a strategic European footprint, and in-house battery development – advantages that most competitors lack, according to William Blair.

William Blair initiates on air taxi developer Vertical with 'outperform' 

Ventyx Biosciences, Inc.

Eli Lilly and Company

Shares of Ventyx Biosciences, a small-cap developer of anti-inflammatory drugs, jumped nearly 70% in early trading on Wednesday, January 7, after the Wall Street Journal <a href="https://www.wsj.com/health/pharma/eli-lilly-nears-deal-for-biotech-ventyx-3bc666d2">reported</a>&nbsp;that Eli Lilly is in talks to acquire the biotech.

Small biotech Ventyx soars 70% amid 'advanced talks' with Eli Lilly to be acquired

SoundHound AI, Inc.

Three months ago it said the stock was too rich after meme rally

Small caps