Russell 2000 jumps 22% in best 1st half since 1991
Small-cap stocks are having a standout year: Russell 2000 jumped 22% in the first half of 2026, its best run since 1991 and outpacing the Nasdaq by nine points.
The rally's fueled by lower inflation after the U.S.-Iran peace deal, cheaper oil, and a surprisingly strong economy.
Likely steady rates boost small-cap outlook
With interest rates likely to stay steady thanks to a cooling job market, smaller US companies that depend on local business are thriving.
Investors are starting to look beyond just AI and chip stocks, shifting toward sectors like health care and consumer goods.
Analysts predict Russell 2000 companies could see earnings grow over 50% by 2026, more than double what's expected for large caps.
Even pros like Joshua Schachter say small-caps are where the growth is right now.