NYT: Russell 2000 in Bear Market Territory
On March 14, 2025, the Russell 2000 index, which tracks the performance of small-cap U.S. stocks, entered into a bear market as it dropped by more than 20% from the peak it reached on January 4, 2025. This is the first time that the index has entered into bear market territory since 2020 when the Covid-19 pandemic hit the world, plunging the global economy into a major downturn. The current bear market comes amidst growing concerns over the rise of inflation, a hawkish stance from the Federal Reserve, and geopolitical tensions between major powers. Small companies in the tech sector have been among the hardest hit as investors seek shelter in defensive stocks, causing steep losses for some stocks in this sector. Traders and analysts outside of the Wall Street are uncertain about what lies ahead and have cautioned against making any hasty decisions.
Leave a Reply