Happy Monday! With major U.S. stock market indexes powering higher, small-cap stocks have been left in the dust, and are languishing at levels not seen in decades. However, that gap might be coming to an end with major policy shifts looming. Find out what could ignite a small-cap comeback and why the stage could be set for a market rotation investors can’t afford to miss.

Also, Bitcoin crossed the $105,000 threshold this weekend, lifting the broader crypto market by more than $250 billion. Read on to see what’s driving the surge.

Plus, if you’re looking for a unique play in cosmetic healthcare and clinic management services, check out today’s sponsor.

In today's edition

• MARKET RECAP

• FIVE ZINGERS

• MARKET HISTORY

• ONE FOR THE ROAD

Russell 2000 Holds At 24-Year Low Vs. S&P 500: Why Trump's Deregulation Could Spark A Turnaround

While the major indexes have soared and clawed their way back from April’s lows, small-cap stocks are falling behind. When comparing the Russell 2000 with the S&P 500, the ratio between the two indexes is now at levels not seen in 24 years.

Much of it is due to tariffs and trade uncertainty, which has led investors to continue to favor large, multinational companies that can absorb and scale global volatility. But that dynamic may soon be put to the test.

Recent shifts in U.S. trade policy — particularly President Trump's rollback of tariffs — may be setting the stage for a small-cap resurgence. As the economic winds change, smaller firms, often seen as more vulnerable to trade shocks, might finally get the breathing room they need to compete. And trade isn’t the only wildcard in play.

There’s a potentially bigger catalyst looming on the horizon: deregulation. If Trump’s proposed easing of federal oversight becomes reality, that will only add fuel to the fire in what could lead to a long-awaited rotation into small caps.

SBC Medical Grows Clinics And Customers During Q1, Announces Share Buyback

SBC Medical Group Holdings Inc.’s (NASDAQ: SBC) move to overhaul its pricing structure and streamline operations seems to be paying off, with the company reporting first-quarter earnings per share of $0.21 – up 5% year-over-year – and EBITDA margin at 52%, up from 46% in the year-ago first quarter.

SBC Medical ended the quarter with 251 clinics, increasing the number by 36 year-over-year. Meanwhile, the company grew its number of customers by 14% to 6.1 million in the last twelve months ending in March, and customers who visited franchisee clinics two or more times was 71%.

SBC Medical also announced an up to $5 million share buyback program, saying shares are undervalued. To learn more about SBC Medical Group, click here.

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Last Week: U.S. indexes finished higher Friday, marking the S&P 500’s fifth consecutive gain, as easing trade tensions boosted investor sentiment. The Dow Jones Industrial Average climbed the highest, and with its move, is now positive on the year — joining the S&P 500. For the week, the Nasdaq surged 7.2%, with the S&P 500 up 5.3%, and the Dow climbing 3.4%. Treasury yields declined, with the 10-year yield falling to 4.44%, as global markets delivered mixed signals. Housing starts edged up in April, signaling homebuilder confidence despite elevated mortgage rates. Consumer sentiment weakened for a fifth straight month, hitting its lowest level since 2022, as short-term inflation expectations surged to 7.3%, driven largely by tariff concerns. Despite weaker sentiment, consumer spending remained resilient.

On Our Radar: Analysts will turn their attention to the U.S. leading economic indicators report — due later this morning — for fresh clues on economic growth and trajectory. Also, earnings season continues with retail giant Home Depot (HD) set to report its first-quarter results ahead of Tuesday's market open.

Cloud Nine: CoreWeave, an AI Hyperscaler, set a new 52-week high on Friday after crushing analyst estimates during its first-ever earnings report. Powered by OpenAI and Microsoft deals, as well as backed by Nvidia, check out the details to see why this AI upstart is stealing the spotlight.

Rack and Roll: TSS was one of the biggest winners of the week as shares of the data center company climbed nearly 100% — including a 74% jump Friday — after blowout Q1 earnings. With a new facility ramping up and aggressive growth projections, read the full story to see why this could be one of the most surprising AI infrastructure plays.

Rocket Rally: Shares of Virgin Galactic Holdings soared after the company reported better-than-expected Q1 financial results and gave investors a roadmap targeting commercial spaceflights by 2026. Read on to see why this stock may be ready for liftoff.

Cloud Burn: Alibaba posted mixed earnings — topping profit expectations but falling short on revenue. A sharp 76% drop in free cash flow from aggressive cloud spending sent shares sliding. See what's next for China's tech titan.

Code Red: Despite beating analyst estimates on the top and bottom lines, shares of Doximity plunged as much as 25% before recovering a bit on Friday. Discover what’s behind the big drop and if this is a buying opportunity or a red flag.

Don’t miss Benzinga’s must-attend virtual forum on the rapidly evolving ETF market! Join us on June 5th at 10 am ET to explore the latest trends in crypto ETFs, thematic ETFs, and innovative structures. Gain valuable insights into strategies reshaping how financial advisors guide clients and how retail investors adjust their portfolios.

On This Day…

Oatly Group AB, the Swedish oat milk producer, went public in 2021 with an IPO price of $17 per share. The company raised roughly $1.4 billion, achieving a valuation of approximately $10 billion. Shares surged nearly 18% on the first day of trading, underscoring the market's appetite for plant-based and sustainable food alternatives. Today, the stock price is down 98%.

QUOTE OF THE DAY

"Time is more valuable than money. You can get more money, but you cannot get more time." 

— Jim Rohn

Bitcoin Skyrockets Past $105,000 Mark, Triggers $250 Billion Crypto Market Rally

Bitcoin’s surge continues as the recent rally took it over $105,000 on Sunday — a 37% gain from its April low — which has lifted the entire cryptocurrency market.

Bitcoin’s dominance is now over 53.2%, its highest in more than three years, as capital continues to shift into large-cap digital assets amid increasing regulatory clarity in major markets.

In total, more than $250 billion in value has returned to the sector in just the past five trading days, with both Bitcoin and a range of altcoins riding the wave.

While headlines focus on the big number, the underlying drivers of this rally tell a deeper story that investors shouldn’t overlook.

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