US stocks traded mixed on Friday as investors balanced a tech rebound with steady buying in smaller companies. The S&P 500 stayed largely unchanged in late morning New York trading, while the NASDAQ 100 rose about 0.2% and the Dow Jones Industrial Average slipped about 0.1%.
Investors kept a close watch on semiconductors, which held up better than the broader market. The Philadelphia Stock Exchange Semiconductor Index rose about 1.7% during the session, echoing a renewed bid in chipmakers tied to the artificial intelligence supply chain.
Chip stocks extended gains after Taiwan Semiconductor Manufacturing Co. posted results that beat expectations and pointed to continued AI-driven demand. Reuters reported that TSMC delivered record quarterly profit and flagged additional US capacity plans, which helped lift sentiment across the semiconductor complex.
The broader market still struggled to build strong upward momentum. Reuters described a choppy week for equities even as chipmakers rallied, with investors tracking policy risk, Fed headlines, and incoming results. Market attention now shifts to the next wave of earnings, including large technology and industrial names that can shape guidance for 2026.
Small caps continued to outperform large caps, supported by a mix of easing rate pressure and expectations for resilient growth. Bloomberg reported that the Russell 2000 beat the S&P 500 for an 11th straight session, extending a run that points to broader market participation beyond the largest stocks. The early-year gap left the Russell 2000 well ahead of the S&P 500 in the year-to-date figures cited.
History offers context for that type of start. Bloomberg’s Markets Wrap cited Bloomberg Intelligence analysis that tracked five prior years since 1979. In each case, small caps opened a lead of at least 500 basis points in the first month. In four of those cases, the Russell 2000 maintained the lead by the end of the year. Large caps still narrowed the gap in several years.
US Treasury yields moved only slightly. The 10-year yield edged up by one basis point to about 4.18%, while the 2-year yield held near 3.57% in the figures cited. Investors often use these moves to gauge whether the market expects looser financial conditions or a firmer inflation path.
Currency and commodity markets also showed modest moves. The Bloomberg Dollar Spot Index eased about 0.1%, while the yen strengthened to roughly 157.85 per dollar in the snapshot. West Texas Intermediate crude rose about 0.7% to $59.63 a barrel, and spot gold stayed little changed. Crypto prices remained rangebound, with bitcoin around $95,390 and ether near $3,301 in the same update.
Paramount Skydance Corp.’s leadership held talks with French President Emmanuel Macron as it sought support for its $108.4 billion hostile bid for Warner Bros. Discovery Inc.
Movie theater groups warned EU merger regulators that a takeover of Warner Bros. Discovery Inc. by Netflix Inc. or Paramount Skydance Corp. could harm the industry.
Walmart Inc. appointed new heads for its three main divisions ahead of a leadership transition in the coming weeks.
PNC Financial Services Group Inc. reported a 9% increase in fourth-quarter revenue as middle-market financing and dealmaking improved.
Barclays PLC downgraded HP Inc. to underweight from equal weight.
JPMorgan Chase & Co. raised Honeywell International Inc. to overweight from neutral, lifting the shares.
Morgan Stanley downgraded Kraft Heinz Co. to underweight from equal-weight, pressuring the stock.
Mosaic Co. fell after the company cited weaker-than-normal seasonal demand in North America.
Porsche AG reported a 10% drop in deliveries last year, citing weak EV demand and softer China sales.
Glencore Plc agreed to buy at least 500,000 tons a year of hot briquetted iron from a planned Oman plant from 2030.
Mitsubishi Corp. agreed to buy Aethon Energy Management LLC’s US gas and pipeline assets for $5.2 billion.
Reliance Industries Ltd. reported a profit miss as petrochemical and retail growth lagged, despite strength in refining and telecoms.
With earnings season gaining momentum, investors will watch closely for guidance that confirms whether the shift toward tech and small caps can extend into 2026.
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