Small-cap Russell 2000 enters correction territory
A trader works at the New York Stock Exchange (NYSE) during the opening bell on March 18, 2026 in New York.
Angela Weiss | Afp | Getty Images
Russell 2000 It has fallen more than 10% from its recent high, becoming the first of the major US benchmarks to fall into correction territory in 2026.
A correction is defined as a decline of more than 10% and less than 20%.
Russell 2000, 1 year
Small-cap markets have actually outperformed the year, with the Russell 2000 off just 1% in 2026, as hopes for easier monetary policy and a shift away from large caps strengthen the asset class.
But the indicator fell this month amid the ongoing war in Iran, causing it to rise more than 50%. Brent crude oil futures. With greater exposure to cyclical sectors, the Russell 2000 is particularly sensitive to changes in oil prices and a slowdown in the economic cycle. It’s down more than 6% this month.
Other major averages may soon join the small cap index. Dow Jones Industrial Average And Nasdaq Composite It is down over 9% from its all-time highs. S&P 500 It decreased by over 6 percent.
