April 17 (Reuters) - The small-cap Russell 2000 hit its first intraday record high on Friday since the U.S.-Iran conflict erupted, joining other major indexes at all-time highs and suggesting the recent equities rally is broadening beyond large companies.
The move comes less than a month after the index confirmed a correction, defined as a fall of 10% from a recent peak.
Small-cap stocks tend to be more sensitive to interest rate expectations, making them vulnerable to shifts in inflation risks.
The spike in oil prices after the closure of the Strait of Hormuz during the U.S.-Iran war revived inflation concerns and clouded the outlook for Federal Reserve rate cuts.
Iranian Foreign Minister Abbas Araqchi said on Friday the Strait of Hormuz was open following a ceasefire accord agreed in Lebanon, causing a sharp fall in oil prices and lifting risk assets globally.
Small-caps entered the year as a favored trade as the searing rally in AI-linked names pushed investors to look beyond technology heavyweights for undervalued areas of the market.
If geopolitical risk moves firmly into the rear-view mirror, that trend may regain momentum.
So far this year, the Russell has outperformed the benchmark S&amp;P 500 (.SPX) , the tech-heavy Nasdaq (.IXIC) and the blue-chip Dow Jones Industrial Average (.DJI) .
The S&amp;P 500 and the Nasdaq hit record intraday highs on Wednesday.

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Russell 2000 scales intraday peak weeks after war-driven slide into correction