The iShares U.S. Home Construction ETF was rallying 5.1% toward an eight-month high in recent trading, with all 46 of its equity components gaining ground. The ETF has now soared 26% amid a three-month winning streak.

Since March 2021, on a total return basis, small cap stocks have underperformed large cap stocks by almost 60%, according to Bloomberg.

Chinese equities are surging. The Shanghai Composite Index — dominated by retail investors — is up about 13% this year.

US stocks are “in the early days” for a bubble, although the critical point for a correction has yet to come, Oaktree Capital Management LP co-founder Howard Marks cautioned.

The Nasdaq composite has fallen around 2% over the past two days.

With defense spending and uncertainty rising, the demand for products from General Dynamics, Northrop Grumman, and others is only likely to grow, providing a continued boost to their stocks.