The Russell 2000 index surged 20.7% year-to-date, surpassing the S&P 500’s 12.8% gain and the Magnificent Seven’s performance.
The Russell 2000 small-cap index reached a record high this week, breaching the 3,000 level for the first time. Its 20.7% year-to-date return outpaced the S&P 500’s 12.8% gain and the so-called Magnificent Seven stocks, which have dominated market attention in 2024.
While the S&P 500 and Dow Jones Industrial Average also hit record highs, the Russell 2000’s rally reflects broader market strength beyond large-cap tech. The index’s performance contrasts with early-session declines in software stocks, which weighed on the Nasdaq Composite.
Energy stocks and semiconductors showed resilience, with the iShares Semiconductor ETF gaining 2% despite a 2% drop in the software-focused IGV ETF. Oil prices rose 1%, supporting energy sector gains.