On Wednesday, the US stock indices opened with mixed performances following record highs.
The S&P 500 and Nasdaq recorded price corrections on profit-taking while the Russell 2000 gained after a 3.5% increase on Tuesday, marking a five-day winning streak.
This broadening market rally is driven by traders’ optimism about potential interest rate cuts, which are expected to benefit small-cap stocks and companies with higher financing costs. Investors fully priced a rate cut in September and three cuts in total this year, as more Fed members delivered dovish comments.
Trump asks why should the US defend Taiwan against China? Taipei ‘should pay’
Tech stocks like Apple, Nvidia and Meta dropped, signaling a pullback from mega-cap technology stocks. US-listed shares of Taiwan Semiconductor lost ground after Trump’s comments on Taiwan’s security.
ASML, which sells semiconductor equipment for chipmakers, sank despite better-than-expected quarterly results. This decline followed a report that the Biden administration is considering tougher trade restrictions if companies like ASML continue to make their technology available to China. As a result, the technology sector could remain exposed to the political developments in the US and the uncertainty surrounding the upcoming elections.
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