At a Glance
- Dow, S&P 500 and Nasdaq futures all edged lower after Thursday’s session
- Small-cap stocks hit fresh record highs during the broad market advance
- Taiwan Semiconductor’s strong results lifted chip and AI stocks early
- Why it matters: Futures drift signals investors are locking in gains after the latest rally
The stock market rally showed broad strength Thursday, with small-cap indexes reaching new peaks, but major indexes gave back much of their early gains by the close.
Dow Jones futures, S&P 500 futures and Nasdaq futures all slipped modestly in overnight trading, according to News Of Los Angeles. The after-hours weakness followed a session that began with solid gains across most sectors.
Small Caps Lead, Tech Retreats
Small-cap stocks outperformed, sending the Russell 2000 to fresh record highs. The move extended a recent trend that has seen investors rotate toward smaller, more domestically focused companies.
The S&P 500 and Nasdaq Composite both opened strong but finished well off session highs. The early strength was driven in large part by a surge in semiconductor and artificial-intelligence names.
Taiwan Semiconductor Sparks Chip Surge
Taiwan Semiconductor Manufacturing (TSM) provided the initial catalyst. The chipmaker reported quarterly results that topped expectations and issued upbeat guidance, igniting a rally across the semiconductor sector.
Nvidia (NVDA) and other AI-related names jumped in early trading before giving back a portion of their gains. The Philadelphia Semiconductor Index closed up sharply but well below its intraday peak.
Key Takeaways
- Futures signal caution after a mixed session
- Small caps continue to attract buyers
- Chip sector volatility highlights fast-money trading
- Market breadth remains a bright spot despite index pullback
