As bond yields continue to rise, small-cap stocks are experiencing significant declines. The Russell 2000 index, which benchmarks shares of smaller companies, fell for the fifth consecutive week, marking its longest losing streak since May 2022. This week, the index dropped by 0.9%, resulting in a total decline of 5.7% over the past five weeks.
This downturn contrasts sharply with the performance in the first half of the year, when small-cap stocks saw their most substantial gains in decades.
