The Russell 2000 hit a new intraday record of 2,470.2 points on Thursday

The Russell 2000 broke past its all-time record on Thursday, hitting 2,470.2 points during the trading session. That beat its old intraday high of 2,466.49, set back on November 25, 2024.

It was also about to close above its previous record of 2,442.74, untouched since 2021. The rebound came after months of pressure tied to President Donald Trump’s new tariffs, which had pulled the index down hard back in April.

According to data from Bloomberg, this is a full comeback for the small-cap index, which has now bounced roughly 42% from its April 7 low.

That April drop came when Trump’s sweeping trade policies spooked global investors, who quickly started dumping anything tied to risk. Small caps took the hit first. But the return of easier Fed policy helped flip the mood.

While the S&P 500 usually falls in September, it’s up more than 2.5% so far this month. That’s not typical. Over the last 75 years, it usually drops 0.7% on average during September. This year’s different. Lower rates are keeping the rally alive.

Nvidia’s $5 billion Intel deal sends shock across markets

The Nasdaq 100 jumped 1% Thursday, led by tech stocks. Nvidia threw down $5 billion into Intel, giving the struggling chipmaker its biggest single-day boost in a while.

Intel popped 23%, pulling the whole sector higher. The Russell 2000 followed, adding 2.5% by close. At the same time, FedEx brought its full-year earnings outlook back, a move traders took as a green light to keep buying.

Jobless claims also dropped more than expected, the biggest fall in almost four years. That erased earlier gains in the bond market and signaled that companies aren’t laying people off. That’s more fuel for the bulls.

Robert Schein, chief investment officer at Blanke Schein Wealth Management, said, “The Federal Reserve is cutting interest rates during a time when stocks are at record highs and the economy is still growing.” That combo, no Fed hawkish shock and solid economic numbers, is keeping people in the market.

Traders eye next move as Russell 2000 breaks out

Adam Turnquist, chief technical strategist at LPL Financial, said the lack of any negative Fed surprises and the start of another rate-cut cycle could cancel out seasonal selling. And for once, September doesn’t look like a landmine. There’s growing confidence the Fed will cut rates by another 75 basis points by Q1 2026.

Back to small caps, Matt Maley from Miller Tabak said he’s watching the Russell 2000 more closely than big tech right now. “If they can break above that level in a significant way over the next week or two, it should be very bullish,” Matt said. “If, however, they fail at this level (or slightly above it), it’s going to be quite bearish.” In other words, what happens next with small caps could set the tone for the broader market.

While some traders keep talking about a bubble, especially in the S&P 500, others aren’t sold. The top five tech stocks (yes, the usual megacap suspects) have done most of the heavy lifting this year. But their profit growth is still holding up. Critics say it’s a dangerous setup, but there’s no crash yet.

Some investors are still underweight on stocks, waiting for better entry points. Others are phasing back in, buying the dips and picking sectors they like. Robert says tech and financials could both benefit from lower rates; tech from valuations, and banks from more mortgage and M&A activity.

Meanwhile, data shows the S&P 500 has dropped about 1% on average every September since 1971. But when the Fed’s cutting and the economy’s still standing, it’s different. The index has actually gained 1.2% in those situations.

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