While the S&P 500 powers through rising bond yields and higher crude oil prices, the Russell 2000 index's year-to-date gain has dropped from 20% to 14% in September. The correlation between small-caps and the price of the 10-year Treasury note touched a one-year high above 0.97 last week. Kevin Gordon, head of macro research and strategy at the Schwab Center for Financial Research, attributes this to the Fed's hawkish turn and continued increase in long-end rates.