U.S. small-cap shares surged on Friday after Federal Reserve Chair Jerome Powell suggested the central bank is prepared to begin lowering interest rates, lifting the Russell 2000 Index as much as 4% for its strongest intraday gain since 9 April. The rally, which sent the iShares Russell 2000 ETF to a fresh year-to-date high, was unusually broad: roughly 98% of index members traded higher, the widest advance since January 2019, according to Bespoke Investment Group. Homebuilders and regional banks were among the leading groups as investors rotated into domestically oriented companies expected to benefit most from cheaper borrowing costs. After the move, the small-cap benchmark is beating the S&P 500 by nearly five percentage points over the past three months, underscoring a shift in market leadership should the Fed embark on an easing cycle.