The Russell 2000 is lower since the day before the February employment report, while the S&P 500 is nearly 4% higher. That is a large margin of outperformance considering the market has gone higher. I think this may be part of a larger secular shift to large cap outperformance. Large caps have now outperformed over a one year period as well.
Small cap stocks have outperformed large cap stocks since the year 2000. Large caps now trade at a large valuation discount to small caps and seem poised to outperform. I think that this change is being driven by the fact that large cap companies are spending a lot more of their cash repurchasing their own stock or acquiring other large cap companies versus acquiring small cap companies.
Large cap outperformance makes sense to me as I would prefer to own cheaper companies with better liquidity. After several false starts over the past decade large caps may finally be having their day in the sun.