Small cap-focused Russell 2000 becomes the first of major U.S. benchmarks to enter correction territory this year

[https://www.cnbc.com/2026/03/20/small-cap-russell-2000-enters-correction-territory.html](https://www.cnbc.com/2026/03/20/small-cap-russell-2000-enters-correction-territory.html) * The Russell 2000 has fallen more than 10% off its recent high, becoming the first of the major U.S. benchmarks to fall into correction territory this year. * A correction is defined as a decline of more than 10% and less than 20% from a recent high. * Small caps are especially sensitive to changes in oil prices and a slowdown in the economic cycle. Small caps actually outperformed to start the year, with the Russell 2000 just 1% off in 2026 as the hope of easier monetary policy and a pivot away from large caps boosted the asset class. But the benchmark has tumbled this month amid the ongoing war in Iran, which has spurred a more than 50% spike in [Brent crude oil futures](https://www.cnbc.com/quotes/@LCO.1/). The Russell 2000, which has greater exposure to cyclical sectors, is especially sensitive to changes in oil prices and a slowdown in the economic cycle. It’s down more than 6% this month. The small cap index could soon be joined by other of the major averages. The [Dow Jones Industrial Average](https://www.cnbc.com/quotes/.DJI/) and the [Nasdaq Composite](https://www.cnbc.com/quotes/.IXIC/) were last more than 9% off their all-time highs. The [S&P 500](https://www.cnbc.com/quotes/.SPX/) was off by more than 6%. QQQ and DOW are almost there , way things are going maybe by the close :/ i don't understand why this needed to happen other than market manipulation except cant chicken out of this one , IRAN wont just so ok no big deal if we call it quits :/