Traders work on the floor of the New York Stock Exchange (NYSE) as the opening bell rings on March 18, 2026.
Angela Weiss | AFP | Getty Images
The Russell 2000 Index has fallen more than 10% from recent highs, becoming the first major U.S. benchmark to fall into correction territory.
A correction is defined as a decline of more than 10% and less than 20%.
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Russell 2000, 1 year
In fact, small-cap stocks have outperformed since the beginning of the year, with the Russell 2000 down just 1% in 2026 as expectations for monetary easing and a shift away from large-cap stocks boosted the asset class.
But the benchmark has fallen sharply this month as the war in Iran continues, sending Brent crude futures prices soaring more than 50%. The Russell 2000 has significant exposure to cyclical sectors and is particularly sensitive to changes in oil prices and economic cycle slowdowns. It has fallen more than 6% this month.
Small-cap indexes could soon join other major averages. The Dow Jones Industrial Average and Nasdaq Composite Index are down more than 9% from their record highs. The S&P 500 index fell more than 6%.
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