Russell 2000 Enters Correction as Geopolitical Fears Mask Underlying Credit Strength

The broader indices took a significant hit today amid escalating Middle East tensions and tariff shocks, yet beneath the surface, high yield credit spreads tightened and volatility compressed. This stark divergence suggests that institutional capital is looking past the immediate headline panic. Large funds are utilizing the liquidity event to quietly accumulate quality equities while retail participants derisk.