Small caps outperforming as the bottom falls out of the market

Donald Trump's announcement of new tariffs and the Fed's signal that we will only get one rate cut this year have sent indices tumbling. Rising from the chaos are small cap stocks. The last few days, EWSC rose against the S&P and got a big surge in volume relative to the volume in the large cap space. A volume surge like this in small caps often signals the beginning of an extended small cap run.