Formula & Calculation Mechanism
Russell 2000 Small-Cap Spot Index Level
Small caps benefit disproportionately from Fed rate cuts as ~40% of small-cap corporate debt is floating-rate.
Market Impact on US Equities & S&P 500
Russell 2000 outperforming S&P 500 confirms broad economic expansion and risk-on market rotation.
Historical Precedents & Bull/Bear Regimes
Staged massive 10%+ rally in July 2024 following cooler inflation prints.