The numbers are in, and small and microcap stocks did something in Q1 2026 that barely anyone predicted going into the year — they survived.

That may sound like a low bar, but context matters. The first quarter was anything but quiet. Global equity markets started 2026 on solid footing before the U.S.-Israel conflict with Iran rattled investor confidence, shut down the Strait of Hormuz, and sent energy prices surging past $110 a barrel. Sticky inflation, elevated unemployment, tariff uncertainty, and fears of a broader market correction were already in the backdrop. Against all of that, the Russell 2000 gained 0.9% and the Russell Microcap advanced 1.5% in Q1 2026.