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The US market rally has significantly broadened beyond mega-cap tech leaders, highlighted by the small-cap Russell 2000 index hitting new record highs. This momentum is being further reinforced by renewed strength in the AI sector, as leading stocks including Nvidia, Nebius Group, and Bloom Energy approach or surpass their own record peaks. Technical analysts view this dual performance—combining small-cap rotation with sustained AI leadership—as a sign of robust market depth and investor confidence. The expansion follows positive earnings reports and a shift in liquidity toward a wider range of equity classes. Market participants are now closely monitoring ETFs like SPY and IWM for confirmation that this inclusive rally has further room to run. Overall, the combination of record-breaking small-cap performance and AI sector strength provides a highly supportive backdrop for equity markets.
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