The Russell 2000 index of small-capitalization shares turned positive in midday trading on Friday, as concerns over the impact of a potential trade war on the index faded. The Russell rose 0.3%, easily outpacing the moves seen in other major indexes. The index is seen as having less sensitivity to the prospect of increased trade protectionism, something that served as a larger headwind for the Dow and the S&P 500, as the components of the Russell are seen as having a higher concentration of domestic revenue, and less international exposure. On Thursday, when the Dow fell 1.7% and the S&P lost 1.3%, the Russell ended down a comparatively minor 0.3% on the day. The moves on Friday came after President Donald Trump declared that “trade wars are good” a day after announcing that the U.S. would impose tariffs on steel and aluminum imports. The Dow Jones Industrial Average fell 1.1% on Friday while the S&P 500 was off 0.3%. The Nasdaq Composite Index was flat on the day.
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