NEW YORK — The Russell 2000 index climbed 63.30 points, or 2.22%, to close at 2,918.73 on Tuesday, underscoring continued strength in small-cap stocks as investors bet on easier monetary policy, broadening economic growth and potential benefits from artificial intelligence adoption spilling over to smaller companies.

The small-cap benchmark outperformed larger indices for the session, reflecting renewed rotation into shares of smaller firms that are more sensitive to domestic economic conditions and interest rate changes. The advance extended a pattern of small-cap resilience seen throughout much of 2026, with the Russell 2000 building on earlier gains driven by expectations of Federal Reserve easing and fiscal support.

Smaller companies have historically thrived in environments of declining borrowing costs and accelerating economic activity. With inflation showing signs of moderation and the central bank signaling potential flexibility, investors appeared to price in improved financing conditions for businesses with higher debt loads or growth-oriented models typical of the Russell 2000 constituents.

The session's breadth was notably positive, with a majority of components advancing amid gains in financials, industrials, consumer discretionary and technology-related small caps. Regional banks and real estate plays benefited from lower rate expectations, while select industrial and biotech names rode momentum from broader market optimism around innovation and........

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