Small-Caps Explode Higher As Tariff Fears Ease: Humacyte, Forward Air, FormFactor Top Russell 2000

Following President Donald Trump‘s announced tariff delay on Wednesday, the iShares Russell 2000 ETF IWM closed up 8.50%, one of the best days in the index’s history. But what components of the index performed the best?

The following small-cap stocks in the Russell 2000 performed among the best on Wednesday, according to Benzinga Pro:

Humacyte Inc HUMA, up 33.04% from $1.15 to $1.53.
Forward Air Corp FWRD, up 31.90% from $10.50 to $13.85.
FormFactor Inc FORM, up 28.39% from $23.18 to $29.76.
SiTime Corp SITM, up 28.35% from $116.79 to $149.90.
Lovesac Co LOVE, up 27.75% from $12.47 to $15.93.
IONQ Inc IONQ up 23.92% from $21.28 to $26.37.
Wolverine World Wide Inc WWW, up 22.44% from $10.07 to $12.33.
FTAI Aviation Ltd FTAI, up 21.07% from $89.99 to $108.95.

Semiconductor components, as reflected by the iShares Semiconductor ETF SOXX, are among the other top performers in the index on Wednesday. Trump's tariffs raised concerns about disruptions to a global supply chain spanning the Americas and Asia.

Only around 2.5% of companies in the index closed the day in the red, and around a third closed up over 10%.

Why it Matters: Trump’s tariff plan, a hallmark of his successful 2024 presidential campaign, sparked widespread fear on Wall Street. Economists generally view tariffs as stagflationary, causing both a cessation of economic growth and an increase in inflation.

From Trump’s election on Nov. 5, 2024, to April 8, the Russell 2000 index fell over 26%, putting it in bear market territory. The tariffs presumably were feared to hurt small-cap stocks more than large-cap counterparts, as the S&P 500 and NASDAQ indexes saw comparatively smaller declines.

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