The Russell 2000 small-cap index closed at a record high of 2,520.44 on October 27, marking its second consecutive month of record performance. The index has surged 28% over the past six months, surpassing the S&P 500's 23% gain. This growth is driven by a shift in investor interest from large-cap stocks like NVIDIA and Meta to undervalued small-cap stocks such as Oklo and Cipher Mining. Contributing factors include a U.S.-China trade agreement, controlled inflation, and expectations of a Federal Reserve rate cut. The Fed is anticipated to reduce rates by 25 basis points on October 29, potentially benefiting small businesses reliant on borrowing.