It’s Risk-On as R2000 Challenges All-Time High. The R2000 has rallied 12.5% from its 3/30 low and is up 8.7% challenging its 1/22/26 all-time high. On a total return basis, yesterday marked a new all-time closing high for the R2000. The sharp rally has realized sharp shifts in sector and factor leadership from what worked in 1Q26. In a reverse from 1Q26, Tech is leading QTD, up 18%, while Energy is lagging, down -4.1%. Industrials, which outperformed in 1Q26, is also outperforming QTD. Most of Tech’s outperformance is coming from Semis and Tech Hardware. While Capital Goods is providing the most contribution due to its larger weight, Semis and Tech Hardware are the strongest contributors relative to their weight. Even Software, which was 1Q26’s worst performing industry, is modestly outperforming QTD