The Russell 2000 is a critically important index that tracks the leading 2,000 small-cap stocks on U.S.-listed markets. Arguably the riskiest stocks, those belonging to the Russell 2000 tend to perform best when economic conditions are at their prime. And right now, the index is on track to hit fresh highs.
The underlying driver is economic resilience, as reflected in the labor market figures, which continue to reflect growth. While job numbers have contracted from post-COVID peaks, labor conditions have normalized to healthy levels and are showing improvement relative to last year.
