US small-cap stocks, represented by the Russell 2000 Index, experienced a significant rally, reaching a 14-month low on 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 this, some economists and investors see opportunities in beaten-down energy and financial stocks. Additionally, several small-cap companies within the Russell 2000 are currently trading below book value and paying dividends.

Russell 2000 Small-Cap Stocks