Small Caps Pummeled as Omicron Spread Clouds Growth Outlook
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Small caps skidded Monday, as companies particularly vulnerable to travel restrictions fell further out of favor with investors amid renewed lockdowns in Europe and business closures from the fast-spreading omicron variant.
The Russell 2000 Index, the benchmark gauge for small cap stocks, slumped as much as 3%, deepening its selloff since November, when the omicron variant was found in South Africa and triggered a global decline. Earlier this month, the Russell 2000 fell into a correction, losing more than 10% from its Nov. 8 record. It now sits 14% below that all-time high, while the S&P 500 large-cap index has lost 3.6% since the variant news.