The Russell 2000 index of small-capitalization stocks hit an intraday record on Monday, as investors cheered the weekend passage of the Senate version of a sweeping overhaul of the U.S. tax code, as had been widely but not fully expected. The index rose 1.2% and hit an all-time high. Early Saturday, the Senate passed the Republican-sponsored tax reform proposal almost entirely along party lines. Hopes that the Trump administration and Republicans would usher in a business-friendly tax overhaul have been cited as a driver for the stock market’s record-setting streak over the past year. The House and Senate now must agree on a single tax bill before it can be sent to Trump to sign. Small companies are seen has having a larger impact from the passage of any bill, as more of their revenue comes from the U.S., compared with their larger, multinational peers. Thus far this year, the Russell is up 14.5%, below the nearly 19% rise of the S&P 500 , the 24% gain of the Dow Jones Industrial Average and the Nasdaq Composite Index’s 27% gain. However, recent trading has favored the Russell; it is up 10% over the past three months, compared with the 7.4% gain of the S&P.
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