Smaller stocks outperform S&P 500 for the first time since 1986, with tech stocks faltering.

A significant stock market rotation is occurring, with smaller stocks outperforming the S&P 500 for the first time since 1986. The 'Magnificent Seven' tech stocks, previously leading the market, have faltered, while smaller-cap stocks like the Russell 2000 have seen a surge. Investors are closely monitoring corporate earnings as they attempt to predict future market trends.