Russell 2000 Index surges 22%, small-cap stocks experience an epic rally

Glonghui, July 6th—Small Wall Street companies are demonstrating strength that exceeds their size. The Russell 2000 Index, which tracks small-cap stocks, surged about 22% in the first six months of this year. This marks the index’s best first-half performance since 1991, outpacing the Nasdaq Composite Index by around 9 percentage points, reaching its largest lead for the same period since 2006. Just last week, the index set consecutive record closing highs for four trading days in a row. For years, the market had been dominated by AI giants with trillion-dollar market capitalizations, while small-cap stocks often remained a bright spot that was overlooked. Some investors see this as a sign that the recent rally—previously limited mainly to large chip companies such as Intel or Micron Technology—is finally spreading to other corners of the market.