Russell 2000 Surges Ahead, Outperforming S&P 500 and Nasdaq

Small-cap stocks represented by the Russell 2000 index outperformed their large-cap counterparts, including the S&P 500 and Nasdaq Composite, on Tuesday, with a 5.4% increase, the highest since September. This outperformance was driven by flat U.S. inflation data for October. Small-cap stocks have been trailing this year, but on Tuesday, the Russell 2000 outperformed the S&P 500 by the largest margin since March 2020 and the Nasdaq Composite by the largest margin since June 2021.