The Stock Market’s Next Surprise Winner? - 7/14/26 | Market Sense | Fidelity Investments

The first half of 2026 has been a historic year for small-cap stocks, which have delivered their best performance in 35 years! On this episode of Market Sense, a Fidelity portfolio manager breaks down the key forces behind the small-cap comeback, and how trends like infrastructure spending and reshoring can benefit from this asset class, and how small-cap stocks can enhance portfolio diversification. 00:00: Market Sense Introduction 01:18 International markets 04:07 Q2 Earnings season 06:14 What defines a small-cap stock? 07:40 Small-cap stock performance 09:07 Supportive trends and policies for small-cap stocks 10:52 The risk of sticky inflation and small-cap stocks 12:22 AI and small-cap stocks 14:04 AI adjacent small-cap stocks 14:51 Small-cap stocks and a diversified portfolio 16:39 Risks of investing in smaller companies 18:04 Looking ahead: small-cap stocks in next 12-24 months 18:59 Timmer’s take Topics covered: • After years of trailing large-cap stocks, small-cap stocks have been showing renewed strength in 2026, and it’s sparking fresh interest among investors looking for opportunities beyond the market’s biggest names. • On this episode of Market Sense, a Fidelity portfolio manager breaks down the key forces behind the small-cap comeback, and how economic trends like infrastructure spending and reshoring are benefitting this asset class. Questions? Drop them below 👇 and we’ll reply right in the comments. If you want more insights from our Fidelity portfolio managers regarding potential investing opportunities and risks, bookmark this page for the latest articles and videos. https://www.CTA-Fidelity.com/PMinsights • Like what you see? Register for the next event: https://fidelityevents.com/Market-Sen... • Subscribe to Fidelity Viewpoints: https://www.fidelity.com/signup/viewp... • To see more videos, subscribe on YouTube:    / fidelityinvestments   • Follow Fidelity on Reddit:   / fidelityinvestments   • Follow Fidelity on Instagram:   / fidelityinvestments   • Follow Fidelity on TikTok:   / fidelityinvestments   • Follow Fidelity on Facebook:   / fidelityinvestments   • Follow Fidelity on LinkedIn:   / fidelity-investments   • Ask Fidelity on X:   / fidelity   Views and opinions expressed in this webcast are those of the speakers. This discussion is for educational purposes and should not be considered investment advice. Fidelity does not provide legal or tax advice. The information herein is general in nature and should not be considered legal or tax advice. Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917 DISCLAIMER: For workplace use, business to assume risk of promoting. 1271215.1.0 Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917 #Smallcapstocks #stockmarket #growthstocks #inflation #interestrates