Small-cap U.S. stocks, which have been lagging behind their large-cap peers so far this year, outperformed the latter on Tuesday, after data showed U.S. inflation was flat in October.
The Russell 2000
RUT,
made up of the 2,000 smallest companies by market capitalization in the Russell 3,000, rose 83 .49 points, or 4.9% to around 1,789 Tuesday afternoon, according to FactSet data.
The index is on pace for its best day since Nov. 10, 2022, when it rose 6.1%, according to Dow Jones Market data.
Small-cap stocks have been trailing behind their peers, with the Russell 2000 logging a 1.6% gain year-to-date, versus a 17.2% increase of the large-cap benchmark S&P 500
SPX
and a 34.5% return of the tech-heavy Nasdaq Composite
COMP.
However, the Russell 2000 on Tuesday is outperforming the S&P 500 by over 3 percentage points, the most since January 2021. It is also the small-cap benchmark’s 14-th best day in comparsion with S&P since 1988.
The Russell 2000 also outperformed Nasdaq Composite by 2.50 percentage points on Tuesday, the largest one-day outperformance since June 7, when it outperformed by 3.07 percentage points.
U.S. stocks rose on Tuesday, with the Dow Jones Industrial Average
DJIA
up 1.4%. The S&P 500 gained 1.9% and the Nasdaq Composite rose 2.2%.
— Mike Destefano contributed.
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