iShares Russell 2000 ETF is trading 3.1% down today as stronger-than-expected U.S. May payrolls (172,000 vs. 85,000 expected) push investors to price in a more hawkish Federal Reserve path, including potential rate hikes instead of cuts.
- Small-cap stocks are facing intense pressure as the market recalibrates for higher borrowing costs and prolonged economic uncertainty.
- The selloff is broad-based across U.S. equities, with elevated Treasury yields and high oil prices reinforcing a general risk-off sentiment across the Nasdaq and S&P 500.