An index of America's smallest companies closed at the highest level ever on Friday. It hasn't hit a new record in over two years.
Why it matters: The gulf between the biggest and smallest companies widened at the onset of the pandemic — with smaller companies (whose businesses are the most closely tied to the U.S. economy) seen as hit the hardest by the economic effects from COVID-19.
- Yes, but: That idea has been over on Wall Street, with the gap between large caps and small caps narrowing in recent months.
Driving the news: This week, the index surged on the back of positive developments from a coronavirus vaccine.
- The Russell 2000 is up 13% so far this month — outpacing the S&P 500's 9.6% gain. (The S&P 500 is still outperforming for all of 2020.)