In its Q3 2026 investor letter for the Small Cap Fund, Royce said small caps paused after a strong run, with the Russell 2000 and Russell Microcap each down 7.2% in the quarter while the Russell 1000 gained 1.8%. The weakness was driven largely by a rebound in AI-focused mega-cap stocks, while aggregate small-cap fundamentals stayed strong, with Russell 2000 EPS up 19.5%. Royce argues that earnings, not interest rates alone, are the more reliable long-term driver of returns. The letter credits robust results at Apple (AAPL), which designs and sells the iPhone, Mac and iPad along with services, for leading the mega-cap rebound. Apple closed at about $340.42 on October 9, 2026, with a market cap of about $4.91 trillion and a one-month return of 1.07%.
Summary written by Upside AI from the original article. Read the source for full details.
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Related tickers and likely impact
AAPL
▲ Likely positiveApple Inc.
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Technology Hardware, Storage & Peripherals |
| Market cap | $5.0T |
| Close on 10/09/2026 | 336.64 |
| Change that session | -1.11% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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