Ooops! Small Caps Become Latest Momo Trade To Get Monkey-Hammered

Shares of small, U.S.-focused firms are suffering their worst rout in years, removing another pillar of support for the nine-year bull market as it faces heightened turmoil…..That has resulted in an unusual situation where both large and small caps are falling in tandem. After hitting records throughout August, the Russell 2000 index of small-capitalization stocks has slumped, last week entering correction territory—a drop of at least 10% from a previous high—for the first time since 2016.