You know, the Russell 2000 is like the go-to barometer for how shifting money policies and what people are buying affect the US market. So, it totally makes sense that this US small-cap index jumped over 2300 on Wednesday, shooting up almost 8% since its low on August 1st, especially when you compare it to the S&P 500’s 4% and Nasdaq100’s 5.5% bumps. This whole boost got a big nudge from a weak job report, which brought back chatter about the Fed possibly cutting rates in September. Tuesday’s inflation data only added fuel to the fire, sparking a 4% rally in the Russell 2000.
This whole surge is mostly thanks to more corporate loans. Small businesses are all over those, while bigger companies seem to be more into using their cash to buy back shares than taking out loans. When strong corporate numbers were steering the market, Nasdaq 100 was the one setting the pace. The trade tariffs didn’t turn out to be as bad as folks first thought, and there’s still some waiting around when it comes to China.
Because of all this, the Russell 2000 climbed back to the highs it saw in January and February, finally crawling out of what you might call the ‘tariff pit.’ Still, it’s got quite a trek ahead before even thinking about hitting historical highs again—it’s got to shake off where it’s at now around 2450 and those double peaks it hit back in late November 2024 and November 2021.
