Russell 2000^RUT
A benchmark of about 2,000 smaller US companies and the domestic economy.
Past week: +0.35%
30-day price
Where the chart sits — description, not prediction
Trading above both its 50-day (2,845.68) and 200-day (2,603.78) averages — the longer-term trend reads as up. 30-day range 2,747.07–3,004.40; currently in the upper third of that range. RSI(14) 54 — momentum roughly neutral.
Computed from daily closing prices (Yahoo Finance), June 23, 2026. Compare all markets →
What is Russell 2000?
The Russell 2000 holds the smallest 2,000 companies in the Russell 3000, which covers about 98% of US public stocks. These are "small-cap" firms — generally worth a few hundred million to roughly $15 billion, with a median near $1 billion.
It is run by FTSE Russell and is rebuilt each June in the "annual reconstitution," when all US stocks are re-ranked by size — one of the heaviest trading days of the year. Small-caps carry more floating-rate debt than large-caps, which makes the index unusually sensitive to interest rates.
Investors watch it as a read on the domestic US economy: unlike the big multinationals in the S&P 500, Russell 2000 companies earn most of their revenue at home, so the index tends to rise when US growth and credit are strong and fall when they weaken.
What has moved Russell 2000
2022 — the rate-hike bear market
As the Fed raised rates 450 basis points, the rate-sensitive Russell 2000 fell about 21% for the year and was down roughly 32% from its late-2021 peak by September 2022.
July 2024 — the small-cap rotation
A soft June inflation report on July 11, 2024 pushed odds of a September rate cut to nearly 100%; the Russell 2000 jumped 3.6% that day and returned over 10% for the month while the S&P 500 was roughly flat.
September 2024 — the Fed's first cut in four years
The Fed cut rates by 50 basis points on September 18, 2024; the small-cap index, helped by its floating-rate borrowers, reacted with about 47% more upside than large-caps.
April 2025 — first into bear territory on tariffs
After the April 2, 2025 tariff announcement, the Russell 2000 fell 6.6% the next day and dropped about 22% below its high — the first major US benchmark to enter a bear market that episode — because its companies depend on domestic sales.
2025–2026 — recovery and rotation
The index recovered through 2025 and, as the Fed resumed rate cuts, drew a "great rotation" out of mega-cap tech into smaller domestic firms; it traded near 2,918 by mid-June 2026.
Notable moments
Built in 1984 to fill a gap
Frank Russell Company launched the index so institutions could finally benchmark small-cap managers — before it, there was no widely accepted small-cap yardstick.
Reconstitution: the busiest close of the year
Because index funds must trade added and deleted stocks at the same closing price, the late-June reconstitution moves enormous volume — the 2024 close saw roughly $130 billion change hands in the final minutes.
Common questions
How is it different from the S&P 500?
The S&P 500 holds 500 of the largest, often global companies; the Russell 2000 holds about 2,000 small, mostly domestic ones. The Russell tends to do better when the US economy is strong and rates are falling.
Why are small-caps so sensitive to interest rates?
A large share of Russell 2000 debt is floating-rate, so a Fed rate change hits their interest bills almost immediately — unlike large-caps, which more often lock in fixed-rate bonds.
What is reconstitution?
Once a year FTSE Russell re-ranks every US stock by size and rebuilds the index; companies that grew too big move up to the Russell 1000, and new small-caps come in. Funds tracking it must trade to match.
Is it a good economic indicator?
Many analysts treat it as a useful read on domestic conditions because its companies depend on US sales — but like any market gauge it reflects expectations, which can be wrong, and is not investment advice.