Russell 2000 Index: Small-Cap Rally And Declines

US small-cap stocks, represented by the Russell 2000 index, experienced a significant rally, reaching their best performance since November 2022, attributed to cooling US inflation. However, concerns about elevated interest rates and geopolitical strife have led to declines in small-cap stocks, with the Russell 2000 reaching its lowest level since November 2020. Despite some opportunities in beaten-down energy and financial stocks, investors remain anxious about the US economy, causing small-cap stocks to trade below book value and pay dividends.