Russell 2000 hits record as small-cap optimism grows on rate-cut prospects

The Russell 2000 index climbed to a fresh record on Wednesday, trading above 2,531, as investors rotated into small-cap stocks amid optimism that the Federal Reserve could ease monetary policy in the near term. The benchmark’s gains reflect a market dynamic in which hopes for looser financial conditions are outweighing pockets of economic strength that have pushed yields higher across parts of the curve, analysts at Noble Capital Markets said.