The Russell 2000 index of small-cap stocks has hit an all-time high.
The Russell 2000 closed at 2,442.03 on Nov. 25, a record for the index that is mostly composed of stocks with market capitalizations of $10 billion U.S. or less.
It is the first new all-time closing high for the index since 2021. The Russell 2,000 has now gained 10% in the last month, including a 6% gain over the past week.
The Russell 2000 index has been marching higher amid a rally in U.S. equities following the election of Donald Trump on Nov. 5.
Small-cap stocks are expected to do well under president-elect Trump’s incoming administration and its preference for less regulation.
Less regulation is seen as benefitting smaller companies as it will enable them to better compete in the marketplace.
The current rally in the Russell 2000 index represents a reversal of fortune for small-cap stocks.
After underperforming the benchmark S&P 500 index for more than a decade, small-cap stocks are once again outperforming.
The S&P 500 has increased 3% in the past month, trailing the Russell 2000.
The average market capitalization of a company listed in the Russell 2000 index is currently $2.76 billion U.S.
Well-known stocks that are part of the index include clothing retailer Abercrombie & Fitch (NYSE: $ANF), semiconductor company %OntoInnovation (NYSE: $ONTO), and grocer %SproutsFarmersMarket (NASDAQ: $SFM).
So far this year, the Russell 2000 index has risen 21%, its best showing since 2021.