The Russell 2000 index, tracked by the ETF $IWM, has experienced a strong rally in August 2025, with gains reaching up to 4% in a single trading day following Federal Reserve Chair Jerome Powell's remarks. This surge marks one of the best sessions for the index since June 2020 and is close to its best day since April 9, 2025, when the U.S. tariff on Chinese goods took effect. The $IWM is now trading within $10 of its all-time high. Since the lows on April 8, 2025, the Russell 2000 has gained 34.1% over 94 trading days, representing one of the strongest rallies off a low in the past two decades. Additionally, the percentage of Russell 2000 members trading above their 200-day moving average increased by nearly 9 percentage points on a single day, the largest one-day jump since November 2023. The S&P 500 High Beta Index also rose by 3.28%, marking its best day since mid-May 2025. Despite the Russell 2000's strong performance, the $MAGS group of stocks has outperformed both the Russell 2000 and the S&P 500 since the April bottom. Market analysts have noted the possibility of a short squeeze in small-cap stocks contributing to the rally.