The Russell 2000 rose nearly 22% year-to-date, extending its quarterly lead over the S&P 500 for the second straight period.
The Russell 2000 index outperformed the S&P 500 for the second consecutive quarter in Q2, marking its strongest relative performance since early 2020. The small-cap benchmark climbed about 3.8% in the quarter and is up nearly 22% year-to-date.
This outperformance follows a period of underperformance for small-caps, with the Russell 2000 lagging the S&P 500 in prior quarters. The shift reflects renewed investor appetite for riskier assets amid expectations of potential Federal Reserve rate cuts later this year.
The S&P 500, while also posting gains, has trailed the Russell 2000 in relative terms during the same period.