The Russell 2000 index has seen a significant surge in July 2024, posting a 10% gain for the month. This marks the best performance for the Russell 2000 compared to the S&P 500 since February 2000. The small cap ETF outperformed the S&P 500 large cap ETF by over 9%, the largest monthly outperformance on record since the inception of the first small cap ETF in May 2000. Federal Reserve Chairman Jerome Powell indicated a growing sense of confidence about a potential move at the next meeting, further boosting small caps, which are up about 12% for July alone. The Russell 2000 is also up 9.54% so far for the month, reaching 52-week highs.