The S&P 500 soared to fresh record highs on Thursday, riding the wave of a robust semiconductor rally. Taiwan Semiconductor Manufacturing Co. (TSM) delivered stellar earnings, injecting a much-needed dose of optimism into the tech sector after a lackluster report from ASML Holding N.V. (ASML) earlier in the week. The iShares Semiconductor ETF (SOXX) surged by 2.3%, leading sector gains. NVIDIA Corp. (NVDA) also hit new record highs, reaching $141 per share during the morning session.
The Nasdaq 100 outperformed other major indices, reflecting the tech-heavy index’s bullish sentiment. However, the Russell 2000, representing smaller companies, faced resistance at a key technical level, underperforming the broader market. The Dow Jones Industrial Average briefly touched a record high of 43,289 points before retracting slightly.
On the macro front, September retail sales exceeded expectations, indicating robust consumer spending. Additionally, jobless claims fell last week, reinforcing the narrative of a strong and resilient economy. However, this positive economic outlook slightly dampened hopes for Fed rate cuts. Economists expressed doubts about the need for further easing in November, given the strength of the economy.
The U.S. dollar strengthened, with the dollar index (DXY) climbing to levels last seen in early August. The euro weakened by 0.4% as the European Central Bank cut interest rates amid weak economic data and ongoing disinflation. Gold prices, tracked by the SPDR Gold Trust (GLD), rose 0.5%, setting new records despite rising Treasury yields.
The 10-year Treasury yield gained 8 basis points to 4.10%, while the iShares 20+ Year Treasury Bond ETF (TLT) slid 1.6%, experiencing its worst session since early August. Bitcoin (BTC/USD) eased 0.4%, taking a breather after four consecutive sessions of gains.
Market Movers:
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Semiconductor Stocks:
Broadcom Inc. (AVGO) gained 4%, Lattice Semiconductor Corp. (LSCC) climbed 4%, Micron Technology Inc. (MU) rose 3.6%, and Arm Holdings plc (ARM) increased by 3.1%.*
Blackstone Inc. (BX):
Soared over 7% to new record highs following a strong quarterly report.*
