Russell 2000 hits a one-month high on Iran war ceasefire
Sleep Number shares were the top gainers on April 8 / Photo: screenshot of YouTube video / Sleep Number
The Russell 2000, the smid-cap benchmark, jumped 3.4% in early trading on Wednesday to its highest level in more than a month. That would mark the index’s best performance in the last two months, Barron's wrote. However, momentum later slowed. Still, the Russell 2000 managed to post the strongest gain among major U.S. indexes by the close of trading on Wednesday, rising nearly 3%.
Investor optimism was driven by a ceasefire agreed late Tuesday by the U.S., Israel, and Iran. The deal supposedly included a commitment by Tehran to reopen transit through the Strait of Hormuz.
Here are the top 10 small-cap stocks that posted the biggest gains on Wednesday, according to MarketWatch data.
Sleep Number, a developer and manufacturer of smart beds, saw its shares surge 60%.
Spire Global, which analyzes data at the intersection of space and cloud technologies, gained nearly 32%.
Aehr Test Systems, a developer and manufacturer of semiconductor testing systems, increased its market capitalization by 25%.
Chegg, an education technology company, rose 22% by the close of trading on Wednesday.
CDT Equity, a data-driven biotech focused on identifying and developing therapeutic assets, gained 21%.
Outlook Therapeutics rose 17.4%.
Tevogen Bio, which develops immunotherapy treatments, advanced 16.7%.
Hut 8, which focuses on bitcoin mining, data center management, and energy infrastructure, rose 16.7%.
Transcontinental Realty Investors gained 15%.
Solo Brands, which develops and sells outdoor lifestyle products including apparel, grills, and origami folding kayaks, rose 14.7%.
Russell 2000 outperformance
The Russell 2000 was the top-performing major U.S. index at the start of 2026, setting eight records in January alone.
But the conflict in the Middle East changed that: on March 20, the index was the first to enter correction territory, CNBC noted. Small-cap companies typically operate in cyclical industries and are sensitive to higher energy prices, Barron’s explained. They are also highly exposed to borrowing costs as concerns over inflation driven by the war in Iran grew, investors scaled back expectations for rate cuts by the Fed and even began to price in the possibility of rate hikes.
Since then, the Russell 2000 has partially recovered and is up about 5% year to date, while the Dow, Nasdaq, and S&P 500 remain in negative territory.
Small-cap stocks and emerging markets could see “greater upside in this relief rally,” Keith Lerner, chief investment officer at Truist Advisory Services, said in a note cited by MarketWatch. However, he cautioned: “while we continue to see upside, the path higher is likely to remain choppy, given this is a ceasefire rather than a full agreement.”
