Russell 2000 Index Surges 22% in Best First Half Since 1991

The Russell 2000 Index has increased nearly 22% in 2023, marking its best first-half performance since 1991. This surge is attributed to the rising investment in artificial intelligence infrastructure, benefiting small-cap companies, particularly in the semiconductor sector. Notably, 16 of the top 50 performers are chip-related firms, with some like Aehr Test Systems and Ichor Holdings rallying over 400%. Analysts project a shift in earnings growth expectations for Russell 2000 companies, forecasting a climb to 38% for 2026 from 23% at the year's start, driven by improving fundamentals.