Prepared for you by Randy Dunham
October 13, 2026
THE PRINT
Large-cap growth has taken the lead since the Fed’s September meeting.
THE CHART(S) / DATA
For much of 2026, large-cap growth lagged mid- and small-cap growth. At one point, the gap reached roughly 10 percentage points.
But performance began to shift in September, particularly after the Fed’s latest FOMC meeting on September 15–16, when it raised rates by 25 basis points to a target range of 3.75%–4.00%:
Large-cap growth moved higher, while mid- and small-cap growth continued to fall.
One possible explanation is that investors are favoring larger, more established companies in the current rate environment. Larger companies often have more established businesses and greater pricing power.
They may also have more resources to manage changes in borrowing costs and economic conditions.
Takeaway: The shift toward large-cap growth may reflect a more defensive stance from investors. They may be moving away from smaller, more speculative companies and toward larger, more established businesses that may be better positioned to handle higher rates.
THE TAPE
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Material, data, and information in this newsletter are for informational purposes only. This is not tax, legal, or investment advice, and does not constitute a suggestion, solicitation, or offer to buy or sell securities. TTI believes this information is reliable but does not warrant its completeness or accuracy.
It makes sense that the money is either seeking safety or riskier allocations with clearer signals... if such a thing even exists, lol