The stock market is increasingly splitting in two. Over the past three months: Nasdaq-100: +4.6% — dominated by large technology and growth companies Dow: -3.4% — concentrated in large, established blue-chip companies Russell 2000: -5.4% — tracks smaller U.S. companies that are more exposed to domestic growth and financing conditions The nearly 10-point gap between the Nasdaq-100 and Russell 2000 reflects two very different economies. Small caps face high borrowing costs and weaker domestic demand. Cash-rich, AI-linked mega caps continue to benefit from strong earnings. The S&P 500 can hit records while much of the market is still struggling.