Small-cap U.S. stocks, which have been lagging 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
made up of the 2,000 smallest companies by market capitalization in the Russell 3,000, rose 92.82 points or 5.4% to close at 1,798.32, its highest finish since Sept. 20, according to Dow Jones Market Data.
The index also logged its best day since Nov. 10, 2022, when it rose 6.1%, according to Dow Jones Market data.
Small-cap stocks have been trailing their peers, with the Russell 2000 posting a 2.1% gain year-to-date, versus a 17.1% increase of the large-cap benchmark S&P 500
and a 34.7% return of the tech-heavy Nasdaq Composite
However, the Russell 2000 on Tuesday outperformed the S&P 500 by 3.54 percentage points, the most since March 19, 2020, when it outperformed by 6.35 percentage points.
The Russell 2000 also outperformed the Nasdaq Composite by 3.07 percentage points on Tuesday, the largest one-day outperformance since June 7, when it outperformed by 3.07 percentage points.
U.S. stocks ended sharply higher on Tuesday, with the Dow Jones Industrial Average
up 1.4%. The S&P 500 gained 1.9% and the Nasdaq Composite rose 2.4%.
— Mike DeStefano contributed.