Tech Stocks Fall, Small Caps Rise as Earnings and Jobs Data Loom

The rotation out of mega-cap growth and into small caps and value, now in its fourth week, points to a broadening in equity leadership rather than a uniform risk-off move — the Russell 2000's gain alongside a sharp Nasdaq decline is the tell. The concentration of upcoming catalysts in a handful of tech earnings and the delayed payrolls print matters because it leaves the market's direction hinging on a narrow set of data points. Whether this rotation persists beyond those events, or reverses once earnings clear, is the open question worth watching.