The main index of small US stocks hit a new record on Monday for the first time in three years, as investors bet that Donald Trump’s election victory would jump-start their performance after years of lagging behind larger peers. The Russell 2000 rose more than 2 per cent to as high as 2466.48, buoyed by a broad market rally as Trump’s selection of Scott Bessent as Treasury secretary eased investor concerns that the president-elect would bring in sweeping tariffs that hit economic growth.
” The Russell 2000 was particularly badly hit over the past few years by rising interest rates and fears about a potential recession, as smaller companies tend to have higher levels of indebtedness and are more exposed to the domestic US economy compared with larger groups. At its nadir last year, the index had dropped as much as a third from its peak, but it has rebounded over the past 12 months as the economic outlook has improved and the Federal Reserve started cutting interest rates.
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