Sep 2, 2026 · 36 min
Small caps lead as investors weigh tech’s uneven rally
Small Caps Jump Amid Cautious Tech Rally: Dell, Chime Financial, Cactus In Focus
The session shows why a rising market can still demand selectivity, with technical strength, earnings reactions and Treasury yields pulling in different directions.
- 1Small caps outperformed while major indexes advanced, but rising Treasury yields and mixed technology action kept conditions choppy.
- 2Dell’s volatile session ended strongly as exceptional revenue guidance and continued AI server demand supported its outlook.
- 3Chime Financial and Cactus showed stronger technical setups, while earnings reactions split sharply across technology, retail and software stocks.
Don't miss
Dell Technologies swings sharply after the open, then closes powerfully as exceptional revenue guidance and AI server demand support the stock.
The brief
Alissa Coram and Ken Shreve frame a cautiously positive session: major indexes gained, small caps stood out, and mixed technology action made stock selection more important.
Rising Treasury yields and uncertainty around the Federal Reserve complicated the rally, while breadth, moving-average support, oil and financial strength shaped the market’s tone.
Dell Technologies delivered the episode’s clearest reversal, opening volatile before closing powerfully as strong revenue guidance and sustained AI server demand reinforced its outlook.
Chime Financial and Cactus emerge as technically stronger setups, with tight price action, improving profitability and bullish oilfield exposure separating them from weaker peers.
The earnings tape split decisively: HPE held mutedly, NetApp and Broadcom fell, while Five Below, Netskope and Snowflake posted stronger reactions.
What was said on this episode
19 statements · 12 positive · 5 negative · 1 mixed · 1 neutral
Rising oil prices and bond yields create a significant market headwind.
“it's a pretty significant headwind when you have oil prices rising along with bond yields”
Listen at 10:24
Treasury yields will probably retreat after their strong rally.
“We'll probably see yields start to back off a little bit here after such a strong rally.”
Listen at 11:32
USO could retreat as it approaches its prior high near 142.
“It could start to back off highs here as it approaches that 142 high.”
Listen at 11:57
Financial stocks continue to show substantial strength.
“financials are still showing a lot of strength here”
Listen at 13:35
Demand for AI servers remains very strong.
“the AI server demand continues to be very, very strong”
Listen at 14:39
Dell is executing well in the booming AI infrastructure and hardware market.
“the market eventually rewarded Dell for how well it is executing in this booming AI infrastructure and hardware market”
Listen at 14:54
Chime may provide an alternate technical entry opportunity.
“we think that it's a good chance it could give us an alternate entry here”
Listen at 16:28
Chime is likely to hold above its 21-day moving average.
“as long as it can hold above the 21-day moving average here, which we expect there's a pretty good chance it could do”
Listen at 16:33
The neobank sector is growing well.
“these neobanks. And so it's just an area that is growing well.”
Listen at 17:34
Chime is in a period of growth.
“Chime is really in growth mode here”
Listen at 20:03
Cactus is not currently buyable at its present price.
“I don't think it's buyable right here”
Listen at 21:40
Cactus is among the better stocks in its machinery-equipment group.
“Cactus is one of the better names in in this group”
Listen at 22:49
HPE declined modestly while NetApp declined substantially after earnings.
“HPE is just down a little bit. NetApp, on the other hand, is down. Quite a bit.”
Listen at 24:38
Broadcom is estimated to grow 70% in fiscal 2026 and 69% in fiscal 2027.
“70% growth for fiscal 2026 and what's that, 69% growth for fiscal 2027”
Listen at 27:29
Broadcom is delivering strong growth but its stock continues declining.
“Broadcom is delivering in the growth, but still going down.”
Listen at 27:50
Netskope has delivered strong revenue and earnings growth and nears profitability.
“it looks like a company that had been delivering pretty strong top line and bottom line growth in recent quarters and just on the verge of profitability as well”
Listen at 30:13
Snowflake is in growth mode and has performed strongly in recent quarters.
“this company is clearly in growth mode and has really been delivering the goods in recent quarters”
Listen at 32:29
Snowflake appears likely to continue its strong uptrend after powerful results.
“it looks like really, really powerful numbers and just going to continue its strong uptrend, it looks like”
Listen at 33:25
Investors should observe a stock after a sharp gap-up before buying.
“When a stock gaps up, it's usually a good idea just to watch and see how it trades for a little while”
Listen at 34:22
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.