Russell 2000
a.k.a. RUT, Russell 2000 Index, Small caps
A US stock index of around 2,000 smaller companies, a gauge of how small businesses are faring.
In plain English
A US stock index of around 2,000 smaller companies, a gauge of how small businesses are faring.
The Russell 2000 tracks about 2,000 smaller US companies, the "small caps". Where the S&P 500 is dominated by global giants, the Russell is more about domestic businesses that rely on borrowing and the American consumer.
That makes it extra sensitive to interest rates and the US economy. When it outperforms, investors are often betting on domestic growth; when it lags badly, they may be worried about credit and recession.
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