Small-cap stocks staged a recovery during midday trading, with the Russell 2000 Index climbing more than 3.2%.

The small-cap benchmark had gotten off to a strong start early in the year but ran into trouble following the outbreak of the U.S.-Iran war due to its significant exposure to cyclical sectors. It was the first major U.S. benchmark to fall into correction territory, with the Nasdaq Composite and the Dow Jones Industrial Average following suit. Since then, the index has recouped some of its losses and currently sits about 4% below its recent peak.

Year to date, the Russell 2000 still maintains a gain of over 5%, while the Dow, Nasdaq, and S&P 500 are all in negative territory.