As of October 15, 2024, 512 large U.S. companies have declared bankruptcy year-to-date, a figure just six shy of the total during the 2020 pandemic. This marks the largest number of bankruptcies in 14 years outside of the pandemic. In August and September alone, 59 and 63 firms filed for bankruptcy, respectively. Concurrently, the financial health of small-cap companies, particularly those in the Russell 2000 index, is deteriorating, with 43% of these companies reporting negative earnings—the highest percentage since the COVID-19 crisis. This figure surpasses the 41% recorded at the end of the 2008 Financial Crisis. Additionally, the interest expense as a percentage of total debt for Russell 2000 firms has reached 7.1%, the highest level since 2003, raising concerns about the sustainability of these companies in a potentially challenging economic environment.