shares of smaller us companies have taken a drubbing in the market selloff some investors say they are starting to see a deal the russell 2000 benchmark of smallcap stocks has fallen 24 from its november record beginning its decline almost two months before the sp 500 index of largecap companies the sp 500 is down 12 over the same period dragged lower as investors realized that redhot inflation was sticking around and that the federal reserve would likely raise interest rates more aggressively than had been expected