The Russell 2000 is a stock market index tracking 2,000 small-cap U.S. companies, widely used as a benchmark for small-cap performance.
It provides exposure to small-cap stocks that often outperform large-caps during economic recoveries, making it a key indicator of domestic economic health.
Recent rallies are fueled by economic recovery optimism, sector rotations into cyclical stocks, and potential infrastructure spending benefits to small businesses.