Russell 2000 enters correction territory, and the Dow, S&P 500, and Nasdaq are not far off

[crash in the market at wall street]
franckreporter

U.S. equities extended their decline on Friday, with small-cap stocks leading the downturn as rising yields continue to pressure risk assets. The Russell 2000 Index (RTY [https://seekingalpha.com/symbol/RTY])(IWM [https://seekingalpha.com/symbol/IWM]), a widely followed benchmark for U.S. small-cap companies, has officially entered correction territory, falling 10.3% from its January 22 closing high.

The index was last trading near 2,435, hovering just below its 200-day moving average of 2,437—a key technical level closely watched by investors. A sustained break below this threshold could signal further downside momentum for the small-cap segment, which is often more sensitive to borrowing costs and economic shifts.

The broader market has also shown signs of strain. The tech focused Nasdaq Composite (COMP:IND [https://seekingalpha.com/symbol/COMP:IND]) has declined 9.8% from its record high, while the Dow (DJI [https://seekingalpha.com/symbol/DJI]) is down 9.5%, nearing correction territory as well. The S&P 500 (SP500 [https://seekingalpha.com/symbol/SP500]) has pulled back 7% from its peak.

Much of the recent weakness has been driven by a sharp rise in U.S. Treasury yields, as investors increasingly price in a higher-for-longer interest rate environment. Expectations that the Federal Reserve could maintain elevated rates—or potentially resume rate hikes into 2026—have weighed heavily on equities, particularly growth-oriented and smaller-cap stocks.

DOW ETFS: (DIA [https://seekingalpha.com/symbol/DIA]), (DDM [https://seekingalpha.com/symbol/DDM]), (UDOW [https://seekingalpha.com/symbol/UDOW]), (DOG [https://seekingalpha.com/symbol/DOG]), (DXD [https://seekingalpha.com/symbol/DXD]), and (SDOW [https://seekingalpha.com/symbol/SDOW]).

S&P 500 ETFS: (SPY [https://seekingalpha.com/symbol/SPY]), (VOO [https://seekingalpha.com/symbol/VOO]), (IVV [https://seekingalpha.com/symbol/IVV]), (RSP [https://seekingalpha.com/symbol/RSP]), (SSO [https://seekingalpha.com/symbol/SSO]), (UPRO [https://seekingalpha.com/symbol/UPRO]), (SH [https://seekingalpha.com/symbol/SH]), (SDS [https://seekingalpha.com/symbol/SDS]), (SPXU [https://seekingalpha.com/symbol/SPXU]), (FXAIX [https://seekingalpha.com/symbol/FXAIX]), (VFIAX [https://seekingalpha.com/symbol/VFIAX]), (VFFSX [https://seekingalpha.com/symbol/VFFSX]), and (SWPPX [https://seekingalpha.com/symbol/SWPPX]).

NASDAQ ETFS: (QQQ [https://seekingalpha.com/symbol/QQQ]), (QQQM [https://seekingalpha.com/symbol/QQQM]), (SQQQ [https://seekingalpha.com/symbol/SQQQ]), (TQQQ [https://seekingalpha.com/symbol/TQQQ]), (QLD [https://seekingalpha.com/symbol/QLD]), and (QID [https://seekingalpha.com/symbol/QID]).

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