The small-cap Russell 2000 punched through to an intraday record high on Friday, capping a furious 13-day rally that marks the index’s best run since 2020 and signaling that gains are finally broadening beyond the mega-cap tech leaders.
- BZAI stock is flying. See the chart and price action here.
The benchmark’s sprint to fresh highs comes less than a month after the U.S.-Iran conflict drove it into a 10%-plus correction.
The iShares Russell 2000 ETF (NYSE:IWM) is now up roughly 8.6% over the past two weeks, trouncing the S&P 500’s 1.6% gain over the same stretch, according to Benzinga Pro data.
What’s Driving The Move
A major turning point came on Tuesday when President Donald Trump announced a two-week pause in military action against Iran.
The ceasefire sent oil prices tumbling and reignited expectations for Federal Reserve rate cuts — a combination that disproportionately benefits rate-sensitive small caps.
Top Small-Cap Gainers
Individual names have ripped even harder than the index.
According to one-month market data as of Friday, these five Russell 2000 names lead the small-cap board:
- Blaize Holdings Inc. (NASDAQ:BZAI): Up 140%
- Satellogic Inc. (NASDAQ:SATL): Up $129.47
- Aehr Test Systems (NASDAQ:AEHR): Up 126.10%
- Kodiak Sciences Inc. (NASDAQ:KOD): Up 88.26%
- Falcon’s Beyond Global Inc. (NASDAQ:FBYD): Up 72.21
The Bigger Picture
Regional banks, which account for more than 20% of the Russell 2000’s sector weighting, have led the charge as the yield curve steepens.
Industrials tied to infrastructure spending and aerospace reshoring have followed close behind, while beaten-down biotech names have staged a relief rally on the prospect of lower discount rates.
If the ceasefire holds and the Fed delivers the cuts traders are now pricing in, the past 13 days may prove to be the opening act rather than the finale.
Photo: iQoncept / Shutterstock
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