WS #15852
The ratio of small-cap to large-cap equities has fallen to its lowest level since November 2025, with the Russell 2000 trading below its 200-day moving average for the second time this year. This underperformance coincides with a 2.7% drop in mortgage demand as borrowers shift to adjustable-rate products to cope with affordability issues. A survey indicates 25% of US renters spend 70% of their income on rent, further straining consumer discretionary spending and small-business growth prospects.
Small-Cap Underperformance and Housing Stress
The ratio of small-cap to large-cap equities has fallen to its lowest level since November 2025, with the Russell 2000 trading below its 200-day moving average for the second time this year. This underperformance coincides with a 2.7% drop in mortgage demand as borrowers shift to adjustable-rate products to cope with affordability issues. A survey indicates 25% of US renters spend 70% of their income on rent, further straining consumer discretionary spending and small-business growth prospects.