Russell 2000 Bear Market Weakness

"small-cap stocks can be notoriously volatile and may remain so given concerns about the Federal Reserve raising interest rates this year."

"Small-cap stocks are somewhere in between, with 30-day implied volatility in the Russell 2000 at 29. Odds of losing at least 20% between now and Aug 31 are about 24%."

"However, headwinds persist. Elevated geopolitical tensions, fluctuating commodity prices and lingering inflation concerns have kept some investors cautious."

"The decline in small-cap stocks is especially notable as the group outperformed and led the U.S. market to start this year. However, the group has come under pressure as the ongoing war in Iran drives energy prices higher, with a more than 50% increase in Brent crude oil."

"The market-leading index of small stocks fell a sharpest percentage, the Russell 2000, 2%."

"The Russell 2000 index of smaller stocks fell 2.4% Friday, as smaller companies often need more borrowing to grow and can be more dependent on the economy."

"Stocks of the smallest companies, whose profits can be more closely tied to the strength of the U.S. economy than big multinational rivals, fell more than the rest of the market."

"Stocks of the smallest companies, whose profits can be more closely tied to the strength of the U.S. economy than big multinational rivals, fell more than the rest of the market."

""The economically sensitive small-cap Russell 2000 dropped 1.61 per cent.""

""We don't have a broadening and expanding economy that will support broader growth and stock price appreciation," Abate emphasized."