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Small-cap stocks are approaching correction territory as higher borrowing costs continue to weigh on the broader market. FINTECH.TV correspondent Mark Payton joins Remy Blaire from the Cboe trading floor to discuss weakness in the Russell 2000, rising oil prices and growing concerns about disruptions to global energy supplies.
The Russell 2000 has fallen roughly 9% from its recent high, reflecting the pressure elevated borrowing costs are placing on smaller companies. Meanwhile, the VIX has moved into the mid-15s without a major volatility spike, while WTI crude has climbed above $92 a barrel and Brent has surpassed $104, adding to inflation concerns.
Payton also examines prediction market expectations surrounding the Strait of Hormuz. With more than $14 million traded on Polymarket, traders are assigning just a 19% probability that shipping traffic through the critical waterway will return to normal by the end of 2026. Continued disruptions could keep oil prices elevated and create additional challenges for businesses, consumers and financial markets.
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