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Small-cap equities sustained their upward momentum into the third quarter, mirroring prior positive trends. The Russell 2000 Growth Index demonstrated performance consistent with the preceding quarter, though it was slightly outpaced by the Russell 2000 Value Index, which achieved more significant advances. Key sectors like consumer discretionary and real estate also exhibited strong, comparable growth. The overall robust health of small-cap stocks was underscored by the fact that only the consumer staples sector registered a minor decline, affirming broad market strength.

The third quarter saw small-cap stocks not just continue, but in some aspects, accelerate their positive performance. This period was marked by an extension of the momentum observed in the previous quarter, indicating sustained investor confidence and market buoyancy in this segment. Specifically, the Russell 2000 Growth Index, which tracks companies focused on growth, showed a 12.19% increase. This performance was notably consistent with its previous quarter's achievements, suggesting a stable and continuous growth narrative for these types of companies.

However, the Russell 2000 Value Index, comprising companies perceived as undervalued, slightly outperformed its growth counterpart with a 12.60% rise. This indicated a stronger resurgence in value-oriented small-cap firms, perhaps reflecting a shift in investor preference or a delayed realization of their intrinsic worth. This dynamic between growth and value indices provides a nuanced view of the small-cap market, showing that while both segments performed well, value stocks experienced a more pronounced uplift.

Examining specific industry sectors within the small-cap universe reveals further details of this quarter's performance. The consumer discretionary sector, which includes businesses whose products and services are considered non-essential, posted a strong gain of 7.71%. This suggests that consumers had increased confidence and spending capacity during the period. Similarly, the real estate sector also performed commendably, rising by 6.14%, indicating a healthy environment for property-related investments and development.

In contrast, the consumer staples sector was the sole segment to experience a downturn, albeit a modest one at -0.24%. Consumer staples typically include essential goods and services, which tend to be more resilient during economic fluctuations. This slight dip, while minor, highlights a broader trend where investors might be rotating away from defensive sectors into more growth-oriented or cyclical ones, in anticipation of continued economic expansion. Despite this lone negative outlier, the overall market sentiment remained overwhelmingly positive for small-cap equities, affirming their robust and widespread strength.

Overall, the small-cap market demonstrated remarkable resilience and growth throughout the third quarter. The notable gains in both growth and value indices, alongside strong performances in key sectors like consumer discretionary and real estate, paint a picture of a dynamic and expanding market segment. The minimal decline in consumer staples further underscores the broad-based optimism driving small-cap investments.