After experiencing some big gains, the last three plays aren’t delivering returns to investors like they once did. Let’s start with the big tech companies that have been driving the bull market since the start of the 2022 bull market. CNBC’s “Magnificent Seven” index is up nearly 300% during that time, while the S&P 500 is up just under 90%. But in recent months, hyperscalers haven’t had much success, with the Mag7 index up just 2.6% in the past six months. Next is precious metals. In 2025, gold and silver soared 64% and 146%, respectively. However, the commodity has not recovered after a sharp decline at the end of January and continues to trade volatile. Finally, there are small-cap stocks. The Russell 2000 index rose more than 10% at one point in 2026. However, it has underperformed the S&P since its peak on January 22, and is currently up 1.75% for the year. Everything is being weakened by a variety of factors, from questions over artificial intelligence trade to geopolitical headwinds and mixed economic data. The momentum behind the stall came as major market indexes also failed to move beyond a small price band, despite rotations taking place behind the scenes. So should investors expect these trades to pick up steam again, or will this holding pattern continue? Big tech Nvidia has been trading at levels it first hit in late July for months. The meta has been roughly flat since December 1st. Even Alphabet, which broke out in late 2025 and became the best Mag7 stock of the year, has remained largely unchanged since late November. Gil Luria, an analyst at DA Davidson, said investors are becoming cautious due to concerns about the huge capital expenditures hyperscalers are making to build out AI capabilities. “These companies, which were often held because of their strong balance sheets and strong cash flow yields, now have zero cash flow yields,” he said. “That’s why investors are holding back on their investments in hopes that these companies will show that they are generating high returns on their investments.” NVDA GOOGL,META Line 2025-12-01 GOOGL vs. NVDA vs. META chart from December 1, 2025 onwards. Luria added that Big Tech sentiment could improve, especially if exciting new AI models are released and confidence is rekindled that big profits can be made. But even without a specific moment in time, he expects these stocks to perform well thanks to solid fundamentals, which will be reflected in solid earnings and guidance. “It’s just that these big companies are growing their revenues at an accelerating rate,” Luria said. “Eventually, they’ll be rewarded for it.” Gold and silver precious metals initially continued their 2025 rally through January, but plunged after President Donald Trump nominated Kevin Warsh to head the Federal Reserve. Since February 1st, gold is up just 6%, while silver is down nearly 0.8%. However, Alex Shahidi, co-chief information officer at Evoque Advisors, said not to read too much into the metal’s recent moves. “If the situation rises significantly, even a large decline could result in profit-taking,” he said. He added that despite being considered a safe-haven asset, gold failed to break out this week amid the war between the US and Iran as it battles the headwinds of a strong dollar and inflation concerns, making non-yielding assets less attractive. XAU= XAG= Line Chart of XAG= vs. XAU= since February 1, 2026. Shahidi explained that silver is an asset used in the manufacture of a wide range of products, so the outlook will largely depend on future economic conditions, but gold remains in a positive position despite the monthly decline. This is thanks to geopolitical tensions that are expected to remain high for some time, demand from central banks, and investors’ understanding of gold’s historically consistent returns. “The light will turn on for a lot of investors, and I think there will be a big change when that happens,” he said. “It’s hard to predict when that will happen, but all the data is there for the people.” Small-Cap Russell 2000 began 2026 outperforming the S&P, marking its longest streak in nearly 30 years. However, the good performance did not last long. Chris Tessin, lead portfolio manager at Aquitas Investments, said part of the sector’s slowdown in February was due to changes in interest rate expectations. Small-cap stocks are highly sensitive to interest rates because they frequently borrow money to fund their growth. Investors saw the Fed becoming less likely to make another rate cut this month, and there were even hints that rates could accelerate. The increased volatility in early March didn’t help either. “Small-cap stocks are likely to be more affected than large-cap stocks when you actively rotate between risk-on and risk-off,” Tessin said. .RUT .SPX Mountain 2026-01-22 .SPX vs. .RUT Since January 22, 2026. Entering the year, many analysts were bullish on small-cap stocks, expecting an accelerating economy, higher earnings growth, and lower interest rates. The drivers of small-cap stocks may be changing, but the dogma remains intact, Tessin said. “Small-cap stocks tend to be the tip of the whip when it comes to market volatility,” he said. “It may go down further, but it’s likely to recover faster. … There are still people who look at valuations and say, ‘Small relative to large still makes sense.'”
