Loss-making small-cap stocks in the Russell 2000 Index rose by 154%, while profitable companies increased by 34%.

According to The Kobeissi Letter, companies with negative earnings per share in the Russell 2000 Index have risen 154% since mid-2025, while companies with positive earnings per share have increased 34%. Since the beginning of this year, unprofitable companies in the Russell 2000 Index have climbed 45%, and profitable companies have risen 18%. The Russell 2000 Index has gained 20% year-to-date, the S&P 500 Index is up 11%, and the "Magnificent Seven" tech stocks have risen 4%. The best-performing small-cap stocks are technology and infrastructure companies expected to benefit from AI spending.