What is the Russell 2000 index?

The Russell 2000 measures the performance of 2,000 small-cap US companies and is seen as a barometer for domestic-focused firms.

Does this divergence affect Caterpillar stock?

Caterpillar (CAT) is a Dow component and may benefit from the shift to defensive stocks, but direct impact is unclear.

Global AI Trade Cool-Off Weighs on Pre-Markets

US markets showed divergence this week as the Nasdaq and S&P 500 fell while the Dow and Russell 2000 remained positive, driven by global cool-off in AI trade.

June 26, 2026

2 min read

Source: Zacks

US markets experienced a clear divergence this week, with the Nasdaq declining and dragging the S&P 500 lower, while the blue-chip Dow Jones and small-cap Russell 2000 held onto gains.

Details

According to a report by Zacks, the week's trading pattern was established early: sinking in the Nasdaq and, by consequence, the S&P 500, while staying in the green for the Dow and Russell 2000. This divergence is attributed to a global cold feet on AI trade, which impacted heavyweight tech stocks in the Nasdaq.

Context

The moves come as investors await key economic data and Federal Reserve officials' remarks. Concerns over slowing demand for AI technologies have dampened market sentiment, particularly in the tech sector.

What It Means for Investors

The divergence suggests a shift in investor preference toward defensive stocks and small-caps, away from high-growth tech. This could signal a risk reassessment amid economic uncertainty.

Frequently Asked Questions

The Nasdaq declined due to a global cool-off in AI trade affecting tech stocks, while the Dow benefited from defensive stock strength.

Found this useful? Share it

This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.