The Russell 2000 slipped into correction territory on Wednesday, more than 10% below its August peak. Rising Treasury yields and expectations of several Fed rate hikes are pressuring small companies that depend on borrowing.
Small-cap stocks hit a milestone they would rather avoid: the Russell 2000 entered correction territory on Wednesday, logging a drop of more than 10% from its August peak.
Surging Treasury yields and expectations of several Federal Reserve interest-rate hikes to tame inflation weighed on small companies that rely heavily on borrowing and floating-rate debt to finance their businesses.
Historically, the index has gained an average of 1.3% in the month after entering correction territory.
Source: MarketWatch (snippet-based)
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