US stock market down again today: U.S. stock market ended Friday with a mixed and data-heavy picture, underscoring the growing divide between strong earnings momentum in select sectors and broader concerns about valuations, political risk, and market breadth. reflecting selective profit-taking after recent record highs.
US stock market today driven by chip stocks and historic Taiwan investment deal
The strongest tailwind for U.S. equities this week came from the semiconductor sector. Shares rallied sharply earlier in the week after Taiwan Semiconductor Manufacturing Company delivered a blowout fourth-quarter earnings report. The company posted robust revenue growth and upbeat guidance, reinforcing expectations that AI, high-performance computing, and advanced manufacturing demand will remain elevated well into 2026.
Investor confidence received an additional boost after Washington and Taipei announced a major trade and investment agreement. Under the deal, Taiwanese chip and technology companies committed to investing at least $250 billion in U.S. production capacity over the coming years. The agreement is viewed as strategically significant, reducing reliance on overseas manufacturing and strengthening domestic supply chains at a time of heightened geopolitical tension.
That optimism translated into gains across chipmakers, equipment suppliers, and related ETFs. However, Friday’s session revealed a more cautious undertone beneath the surface. According to FactSet data, market breadth was weak, with approximately 1,590 NYSE-listed stocks declining versus only around 850 advancing, signaling that gains were increasingly concentrated in a narrow group of mega-cap leaders.
Valuations, Fed policy, and election risks shape investor sentiment
While fundamentals remain solid, strategists are warning that markets are entering a more fragile phase. Larry Adam, chief investment officer at Raymond James, said earnings growth, margins, and revenue trends remain above average, creating a supportive backdrop for equities. Expectations that the Federal Reserve may begin cutting interest rates later this year have also helped sustain risk appetite.
At the same time, Adam cautioned that elevated valuations leave little margin for disappointment. U.S. equities are trading near historically high multiples, making markets more sensitive to earnings misses or negative macro surprises.
Retail investors now hold a record share of U.S. equities, suggesting that incremental demand could slow. Political uncertainty is another looming factor, with the U.S. heading into a midterm election cycle that has historically coincided with periods of higher volatility. Additional risks include geopolitical flashpoints involving Iran and Greenland, as well as renewed debate over the Federal Reserve’s independence.
Hot stocks today
Among individual stocks, ImmunityBio stood out as one of the session’s most active gainers. Shares jumped 22.41% to $4.83 on volume of 48 million shares, trading near the top of their $1.83–$4.94 52-week range. The move reflected renewed speculative interest in small-cap biotech as investors chased momentum rather than fundamentals.
Locafy delivered the day’s sharpest percentage gain. The stock surged 81.47% to $5.68, with more than 27 million shares traded, far above its average volume. The rally pushed the stock well above its recent lows, though it remains volatile within a wide $2.51–$13.98 range.
Semiconductors remained a core focus. NVIDIA rose 1.5% to $189.87 on 30 million shares, continuing to attract steady inflows as investors stay committed to AI-driven growth. Micron Technology advanced 7.68% to $362.48, nearing its 52-week high of $365.81, underscoring strength in memory pricing expectations.
More established tech names were mixed. Intel edged up 0.21% to $48.42, while Apple slipped 0.32% to $257.38, reflecting profit-taking after recent gains.
Leveraged ETFs show aggressive positioning in chips and Tesla
ETF trading volumes highlighted how active traders are expressing directional views through leverage. Semiconductor-linked products dominated activity.
The Direxion Daily Semiconductor Bull 3x Shares (SOXL) jumped 6.75% to $62.00, nearing its 52-week high, as bullish sentiment followed chip-sector momentum. At the same time, the Direxion Daily Semiconductor Bear 3x Shares (SOXS) fell 5.76%, signaling reduced demand for downside hedges.
Tesla-linked leverage also remained popular. The Direxion Daily TSLA Bull 2X Shares (TSLL) gained 2.89% to $18.50, reflecting continued speculative interest in electric vehicle stocks despite broader market caution.
In commodities-linked ETFs, bearish bets gained traction. The ProShares UltraShort Silver (ZSL) rose 5.67%, benefiting from a sharp pullback in silver prices, while the iShares Silver Trust (SLV) dropped 2.75%, tracking weakness in the underlying metal.
Commodities retreat as risk appetite stays focused on equities
Precious metals came under pressure during the session. Gold slipped 0.2% to $4,614.40 per ounce, retreating from recent highs near $4,650. Silver fell more sharply, down 3.68% to $88.94, while platinum declined 4.18% to $2,309.10, reflecting broad-based profit-taking.
Industrial metals also weakened. Copper, often viewed as a proxy for global economic demand, dropped 2.85% to $5.82, remaining within its $4.03–$6.15 annual range. The pullback suggests that investors remain cautious about the pace of global growth, even as U.S. equities hold near record levels.
Bonds, currencies, and crypto signal cautious macro positioning
In fixed income markets, Treasury yields edged higher across the curve. The 10-year Treasury yield rose to 4.182%, while the 30-year yield climbed to 4.809%, reflecting ongoing concerns about inflation persistence and long-term fiscal pressures. Short-term yields were mixed, with the 2-year Treasury near 3.569%, keeping pressure on rate-sensitive assets.
Currency markets were relatively stable. The euro traded near 1.1621 against the U.S. dollar, while the dollar strengthened against the yen to 157.85, highlighting continued divergence in global monetary policy expectations.
Cryptocurrencies eased modestly. Bitcoin slipped 0.4% to $95,199, Ether fell 0.73% to $3,294, while Litecoin posted a small gain. The pullback reflected consolidation rather than panic, as digital assets paused after recent rallies.
Taken together, Friday’s action showed a market still willing to chase high-growth names and leveraged exposure, while quietly trimming risk in commodities, crypto, and defensive assets. The data points to a late-cycle environment where selectivity, liquidity, and momentum continue to dominate trading decisions.
