New Delhi, May 22 -- For the better part of 2025 and early 2026, the US market has looked like a one‑story play: a narrow cluster of AI‑fueled tech giants has dragged the S&P 500 higher while the rest of the index has lagged. But that concentration is now beginning to fray. In May 2026, small‑cap indices have outpaced the S&P 500 year‑to‑date, and analysts are increasingly talking about a "small‑cap revival" as the rotation takes hold. For Indian investors, this isn't just a style tweak-it's a shift from a headline‑driven view of the US market to a broader, more diversified take on US growth.

Why small‑caps are gaining tractionUS small‑caps are particularly sensitive to domestic deman...