iShares Russell 2000 ETF is trading 3.1% higher today as investors rotate back into risk following Wednesday’s inflation- and Iran-driven selloff in equities.
- Small caps are outperforming broad U.S. indexes as easing geopolitical anxiety and short-covering lift the most beaten-down segments of the market.
- Stronger risk appetite is supporting economically sensitive sectors like financials and industrials, which represent a large share of the index and are driving the outsized move.