Small cap-focused Russell 2000 becomes the first of major U.S. benchmarks to enter correction territory

Core Viewpoint - The Russell 2000 index has entered correction territory, indicating a decline of more than 10% from its recent high, marking it as the first major U.S. benchmark to do so [1] Group 1: Market Performance - Small caps, represented by the Russell 2000, initially outperformed at the start of 2026, being only 1% off its peak due to expectations of easier monetary policy and a shift away from large-cap stocks [2] - However, the index has experienced a significant decline of over 6% this month, primarily driven by the ongoing war in Iran, which has led to a more than 50% increase in Brent crude oil futures [3] Group 2: Broader Market Trends - Other major averages are also showing signs of decline, with the Dow Jones Industrial Average and the Nasdaq Composite both more than 9% off their all-time highs, while the S&P 500 is down by over 6% [4]