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The Russell 2000 Index fell 2.5% on the day, putting the small-cap benchmark on track for its steepest single-session decline since June 5. The move marks a sharp reversal for a segment that had rallied on hopes for lower interest rates and a broadening equity market. The selloff matters because small caps are seen as more sensitive to domestic growth and financing conditions than large-cap peers. Traders will watch whether the drop deepens into the close and whether the weakness spreads to the broader market.

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Russell 2000 Index, Walter Bloomberg