Small-cap equities and semiconductor firms powered gains across major U.S. indices this week, led by strong performances from Taiwan Semiconductor Manufacturing Company and key financial institutions JPMorgan Chase and Goldman Sachs. Market breadth improved as tech-driven momentum extended into mid- and small-cap segments.
- Russell 2000 up 4.3% weekly, marking its strongest performance since late 2023.
- Philadelphia Semiconductor Index gained 6.8%, with Taiwan Semiconductor rising 9.2%.
- TSM reported Q4 revenue of $21.7 billion and raised capex forecast to $40 billion.
- JPMorgan Chase shares rose 5.4%, Goldman Sachs advanced 6.1% on solid earnings and outlooks.
- Dow Jones Industrial Average gained 3.2% amid broad-based strength in financials and tech.
The broader market posted notable gains this week, with the Russell 2000 index rising 4.3%—the strongest weekly performance since late 2023—driven by a rally in small-cap stocks. Sector leaders included semiconductors, where the Philadelphia Semiconductor Index surged 6.8%, outpacing the S&P 500’s 2.1% gain. Taiwan Semiconductor Manufacturing Company (TSM) rose 9.2% after reporting better-than-expected Q4 revenue of $21.7 billion and raising its full-year capital expenditure forecast to $40 billion, signaling continued investment in advanced chip fabrication. JPMorgan Chase shares climbed 5.4% following a report showing its credit quality remained stable despite macroeconomic headwinds, while Goldman Sachs advanced 6.1% on stronger-than-projected trading revenues and positive comments from management about M&A activity in the coming quarter. Both banks contributed significantly to the Dow Jones Industrial Average’s 3.2% weekly increase. Market analysts noted that the rotation toward small caps and cyclical growth sectors reflects growing confidence in inflation control and Fed rate cut expectations later in 2026. The Russell 2000's surge was accompanied by a 22% rise in average daily trading volume, indicating increased participation from retail and institutional investors alike. The rally has also lifted related sectors, including industrials and consumer discretionary, which saw gains of 3.8% and 4.1%, respectively. Investors are increasingly favoring companies with high exposure to AI infrastructure, automation, and global supply chain resilience—factors that have driven demand for semiconductors and industrial services.