Stock Market Update

[BRIEFING.COM] The Nasdaq Composite, Russell 2000, and S&P Midcap 400 Index have all coughed up their early 2025 gains and are negative now on a year-to-date basis.

The Russell 2000 (-3.4%), which has a high concentration of financial and industrial stocks, is the biggest year-to-date loser. Including today's 1.1% decline, the Russell 2000 is down 12.6% from its November 25 high. That puts its squarely in correction territory, which is generally defined as a pullback between 10% and 20% from a prior peak. Anything beyond 20% is considered a bear market.

In comparison, the S&P 500, which has suffered three straight losing sessions (and is currently on track for a fourth straight losing session), is down just 3.4% from the all-time high it reached last week.

Small-cap companies tend to derive most, if not all, of their revenue from the U.S., which is why the Russell 2000 will be watched closely as a proxy for domestic growth concerns.