Small cap-focused Russell 2000 becomes the first of major U.S. benchmarks to enter correction territory
Small caps are especially sensitive to changes in oil prices and a slowdown in the economic cycle.
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In this article .RUT @LCO.1 .DJI .IXIC .SPX Follow your favorite stocks CREATE FREE ACCOUNT A trader works on the floor of the New York Stock Exchange at the opening bell in New York on March 18, 2026. Angela Weiss | Afp | Getty Images The Russell 2000 has fallen more than 10% off its recent high, becoming the first of the major U.S. benchmarks to fall into correction territory. A correction is defined as a decline of more than 10% and less than 20%. Russell 2000, 1-year Small caps actually outperformed to start the year, with the Russell 2000 just 1% off in 2026 as the hope of easier monetary policy and a pivot away from large caps boosted the asset class. But the benchmark has tumbled this month amid the ongoing war in Iran, which has spurred a more than 50% spike in Brent crude oil futures . The Russell 2000, which has greater exposure to cyclical sectors, is especially sensitive to changes in oil prices and a slowdown in the economic cycle. It's down more than 6% this month. The small cap index could soon be joined by other of the major averages. The Dow Jones Industrial Average and the Nasdaq Composite were last more than 9% off their all-time highs. The S&P 500 was off by more than 6%. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news. Subscribe to CNBC PRO Subscribe to Investing Club Licensing & Reprints CNBC Councils Select Personal Finance Join the CNBC Panel Closed Captioning Digital Products News Releases Internships Corrections About CNBC Site Map Podcasts Careers Help Contact News Tips Got a confidential news tip? We want to hear from you. Get In Touch CNBC Newsletters Sign up for free newsletters and get more CNBC delivered to your inbox Sign Up Now Get this delivered to your inbox, and more info about our products and services. Advertise With Us Please Contact Us Ad Choices Privacy Policy Your Privacy Choices CA Notice Terms of Service © 2026 Versant Media, LLC. All Rights Reserved. A Ve...
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