The Russell 2000 index of small capitalization shares fell sharply on Thursday, seeing a steeper drop than the overall market. The index fell 1.1%, its biggest one-day percentage decline since Nov. 7. The decline accelerated after a report that Senator Marco Rubio would vote against the Republican tax bill unless it includes a larger expansion of the child tax credit, which added to the uncertainty over the bill’s prospects for passing. The Russell is seen as having a higher correlation with the prospects of tax reform, as small companies tend to pay higher rates than their larger, multinational peers. The S&P 500 closed down by 0.4% on Thursday while the Dow Jones Industrial Average ended off 0.3%. The Nasdaq Composite Index dipped 0.3%. Thus far this year, the Russell is up 11%, compared with the 18.5% gain of the S&P, and less than half the Dow’s 24% advance.
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